Graeme Manages a Candy Store in a High Traffic Shopping

Multiple Choice

Graeme manages a candy store in a high traffic shopping mall where he has collected the following information:
Weekly demand for small candy boxes = 90 boxes
Cost to place one purchase order with the box supplier = $19.80
Cost to hold one box for one year in inventory = $2.45
ead time = 2 weeks
Weeks in a year = 52 weeks
-The current ordering policy for the candy store is 360 boxes so the average inventory level (i.e., cycle inventory) is:

A) less than or equal to 100 boxes.
B) more than 100 but less than or equal to 150 boxes.
C) more than 150 but less than or equal to 200 boxes.
D) more than 200 but less than or equal to 250 boxes.