Table 1
Peterson Enterprises Uses a Fixed Order Quantity Inventory $= 50,000$

Multiple Choice

Table 1
Peterson Enterprises uses a fixed order quantity inventory control system. The firm operates 50 weeks per year and has the following characteristics for an item:
Demand $= 50,000$ units/year
Ordering cost $= \$ 35 /$ order
Inventory-carrying cost as a percent of item value $= 25 \%$
Item (Unit) value $= \$ 8$
Lead time $= 3$ weeks
Standard deviation in weekly demand $= 125$ units
-Using the information in Table 1, calculate the economic order quantity (EOQ) for this item?

A) Less than or equal to 1200 units
B) Greater than 1200 but less than or equal to 1400 units
C) Greater than 1400 but less than or equal to 1600 units
D) Greater than 1600 units