6. Calculate the economic order quantity, the safety stock, and the average inventory necessary to achieve a 98 percent customer service level, given the following information:

a. The average daily demand for a 25-day period was found to be:

Units Units Day Demand Day Demand 1

8 14 9

2 5

15 10 3

4 16 5

4 6

17 8

5 9

18 11 6

8 19 9

7 9

20 7

8 10 21 7

9 7

22 6

10 6

23 8

11 7

24 10 12 8

25 11 13 12

b. There is no variability in order cycle.

c. The ordering cost is $20 per order.

d. The annual demand is 2,000.

e. The cost is $100 per unit.

f. The inventory carrying cost is 35 percent.

g. The products are purchased FOB destination.