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Using the following given information, calculate the following for a Fixed Quantity Inventory System (FOQ)

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Using the following given information, calculate the following for a Fixed Quantity Inventory System (FOQ). SHOW ALL YOUR WORK!

1. Find the Economic Order Quantity (EOQ), 
2. Reorder Point (r), and 
3. Explain how this system would work in a sentence or two.

Given Information:

• Annual demand (D) = 10,000 cases
• Order cost (Co or S) = $75 per order
• Annual holding cost (Ch or H)= $6 per case
• Lead time (L) = 5 days
• Operating days per year = 250