Given that demand is constant and the EOQ is 2,500 units, the average inventory level-1 without regard to safety stock is 1,250 units 2,500 - 2). Adding safety stock results in an average level of 1,750 units 1,250 + 500). Given also that annual holding costs are 25% of average inventory and that unit cost i s U $4, total annual holding cost i s U $1 ,750 [(1 ,750 units : $4) 25%]. Using an EOQ analysis assuming a constant demand), it is determined that the optimal order quantity is 2,500. The company desires a safety stock of 500 units. A five day lead time is needed for delivery. Annual inventory holding costs equal 25°!a of the average inventory level. It costs the company US $4 per unit to buy the product, which it sells for US $8. It costs the company US $150 to place a detailed order, and the monthly demand for the product is 4,000 units.

According to the outline of a possible e-commerce audit protocol for key areas given in PA 2100-6, the internal auditor should evaluate how well business units are managing the e-commerce when addressing the possible key audit area of management issues. The following is a list of some relevant topics that the internal auditor should review when doing their evaluation:
Project management reviews of individual initiatives and development projects.
System development life cycle reviews.
Vendor selection, vendor capabilities, employee confidentiality, and bonding.
Post-implementation economic reviews: Are anticipated benefits being achieved? What metrics are being used to measure success?
Post-implementation process reviews: Are new processes in place and working
effectively?

In data management terminology, joining is the combining of data files based on a common data element. For example, if rows in a table containing information about specified parts have been selected, the result can be joined with a table that contains information about suppliers. The join operation may combine the two tables using the supplier number assuming both tables contained this element) to provide information about the suppliers of particular parts.

Simulation is a technique for experimenting with logical/mathematical models using a computer. Despite the power of mathematics, many problems cannot be solved by known analytical methods because of the behavior of the variables and the complexity of their interactions. However, the performance of a quantitative model under uncertainty may be investigated by randomly selecting values for each of the variables in the model (based on the probability distribution of each variable) and then calculating the value of the solution. If this process is performed a large number of times, the distribution of results from the model will be obtained.