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Eal Company Has the Following Information Available Concerning One of Its

Question 12

Multiple Choice

eal Company has the following information available concerning one of its inventory items:
 Cost of placing an order $32.00 Unit carrying cost per year $4.00 Annual unit demand 5,625 Safety stock 100 Average daily demand 25 Normal lead time in days 10\begin{array}{lr}\text { Cost of placing an order } & \$ 32.00 \\\text { Unit carrying cost per year } & \$ 4.00 \\\text { Annual unit demand } & 5,625 \\\text { Safety stock } & 100 \\\text { Average daily demand } & 25 \\\text { Normal lead time in days } & 10\end{array}

-Refer to the figure.What is the economic order quantity for this item?


A) 75 units
B) 300 units
C) 600 units
D) 900,000 units

Correct Answer:

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