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    EOQ: What is the reorder point for risk of being out of stock? What is safety stock?

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    54,000 units per year at $8 per unit
    360 day-per year basis
    $90 cost to place a single order
    $3 to carry on unit in inventory one year
    lead-time % of occurrence
    6 75
    7 10
    8 5
    9 5
    10 5

    Company willing to assume 15% risk of being out of stock
    what is the safety stock...what is the reorder point

    Company willing to assume 5% risk of being out of stock
    what is the safety stock ....what is the reorder point

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    https://brainmass.com/business/accounting/safety-stock-problem-40670

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