Your manufacturing concern requires 950 units of a product per year on a consistent basis. The fixed cost per unit is $61 per order, while carrying cost is $3 per unit per year. Allow 7 days for shipping after placing an order. Safety stock requires holding 10 days usage in inventory.

(A)Determine the EOQ.

(B)Assuming a 365-day year, determine the average level of inventory.

(C)Calculate the reorder point.

(D)If the firm does not hold the safety stock, which of these variable would change, and why: (i)order cost, (ii) carrying cost, (iii) total inventory cost, (iv) reorder point, (v) economic order quantity