Sam luggage sells backpacks. Each backpack costs $15.00 each. A customer wants to buy 240 units per week. The company operates 52 weeks a year. The company's ordering costs is $50.00. Annual holding cost is 20% of the unit cost. Lead time is 2 weeks. Using the information given:
• Calculate the economic order quantity (EOQ)-TC = (D/Q)S = (Q/2)H
• Calculate the total annual costs using (EOQ)
• Determine the reorder point.