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Assume: 1. Cost to place an order is $48.00 2. The minimum weight to qualify for a TL rate is 32,000 pounds 3. Inventory carrying

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Assume: 1. Cost to place an order is $48.00 2. The minimum weight to qualify for a TL rate is 32,000 pounds 3. Inventory carrying cost is 32% 4. Our average order cycle time (from when we receive the order to customer receipt of product) is 8.2 days with a standard variation of 1.7 days 5. Annual demand is 10,752 units 6. Cost per unit is $112.00 7.15 units per case (but you do not have to order in case lots) 8.365 days in a year Question 4 Which ORDER QUANTITY (Q*) results in the lowest possible total annual cost? O2 units O 11 units O 30 units 165 units O 170 units 960 units

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