The Orphane Company buys raw materials from an outside supplier at 40 per unit; total annual needs are 6,400 units. The material is used evenly throughout the year. Order costs are 100 per order, and carrying costs for the year are 8 per unit in stock. The firm carries a safety stock of 50 units, has a lead time of one week, and works 50 weeks per year. Determine the economic order quantity (EOQ) and the reorder point. | Numerade
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