The Han's Autoparts Company imports and sells standard air filters for most Japanese cars. It costs the company $60 to process each order, and the lead time is 1 week. The annual holding cost for one unit is $5. The average weekly demand is 100 units and the standard deviation in weekly demand is 30 units. The company operates 52 weeks per year and orders in lot sizes of 200 units.
(a) Determine the EOQ. *ROUND EOQ TO THE NEAREST INTEGER
(b) What is the total cost (holding and ordering) of current order size 200 units?
(c) What is the safety stock if a service level of 90% (z = 1.28) is used.