Table 1
Jackson Enterprises Uses a Fixed Order Quantity Inventory $=20,000$

question 63

Multiple Choice

Table 1
Jackson 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 $=20,000$ units/year
Ordering cost $=\$ 45 /$ order
Inventory-carrying cost as a percent of item value $=25 \%$
Item (Unit) value $=\$ 20$
Lead time $=5$ weeks
Standard deviation in weekly demand $=125$ units
-The total order and inventory-holding cost for the economic order quantity (EOQ) 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 $1500 but less than $2,500.
• D) more than or equal to $2,500.

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