6. High Tech, Inc. is a virtual store that stocks a variety of calculators in the warehouse. Customer orders are placed, the order is
picked and packaged, and then shipped to the customer. A fixed order quantity inventory control system (FQS) helps monitor and
control these SKU's. The following information is for one of the calculators that they stock, sell and ship.

average demand	12.5 calculators per week	
lead time	3 weeks	
order cost	$20/order	
Unit cost	 8.00	
carrying charge rate 0.15
number of weeks	52 weeks per year	
standard deviation of weekly demand	3.75 calculators	
SKU service level	90 percent	
current on hand inventory	35 calculators	
scheduled receipts	20 calculators	
backorders	2 calculators	

a. What is the Economic Order Quantity?	

b. What is the total annual order and inventory holding costs for the EOQ?	

c. What is the reorder point without safety stock?	

d. What is the reorder point with safety stock?	

e. Based on the previous information, should a fixed order quantity be placed, and if so, for how many calculators? 
Additional Requirements