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Alexis Company uses 900 units of a product per year on a continuous basis. The product...

Alexis Company uses 900 units of a product per year on a continuous basis. The product has a fixed cost of $55 per order, and its carrying cost is $2 per unit per year. It takes 5 days to receive a shipment after an order is placed. And the firm wishes to hold 10 days usage in inventory as a safety stock

  1. Indicate which of the following variable change if the firm does not hold the safety stock: (1) order cost, (2) carrying cost, (3) total inventory cost (4) reorder point (5) economic order quantity. Explain.
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