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:
$\begin{array}{lr}\text { Cost of placing an order } & \$ 32.00 \\\text { Unit carrying cost per year } & \$ 4.00 \\\text { Annual unit demand } & 5,625 \\\text { Safety stock } & 100 \\\text { Average daily demand } & 25 \\\text { Normal lead time in days } & 10\end{array}$

-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

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