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1. The cost of a product is $5, and the carrying cost rate is 20%; the cost of processing an order is $45 and the annual demand is 1000. What is the economic order quantity (EOQ)
A. 300
B. 5
C. 20
D. 25
E. 200
2. When demand and delivery lead time are known and constant, daily demand = 8, purchase lead time = 5 days, and the purchase price = $20/unit, then the reorder point is:
A. 56
B. 2
C. 32
D. 13
E. 40
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