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
-The total order and inventory-holding cost is:

A) less than $1,000.
B) more than or equal to $1,000 but less than $1,500.
C) more than or equal to $1,500 but less than $2,000.
D) more than or equal to $2,000.