Compute the order point and determine the most economical order quantity.

Xander anticipates that component t usage will reach 100

Order Point = (Average Daily Usage * Lead Time in Days) + Safety Stock
Take, for example:
Average daily usage = 300 units
Lead time in days = 5 Days
Safe Stock = 100 units
Order Point = (300 * 5) + 100 = 1700 units
Minimum Order Quantity (MOQ), or Most Economical Order Quantity, is the smallest number of items you can order without increasing the overall production costs. It’s calculated by dividing the annual holding cost by the ordering cost.
MOQ = Monthly Holding Cost / Ordering Price

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