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Kelly inc. forecasts that production will require 20,000 tons of material over its planning period (250 days). Demand for Kelly's products is stable over time.

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Kelly inc. forecasts that production will require 20,000 tons of material over its planning period (250 days). Demand for Kelly's products is stable over time. Ordering costs amount to an average of $5 per order. Holding costs are estimated at $1.25 per ton of material. The EOQ is tons, and the total annual cost of inventory is. 500; $400 250; $400 400; $250 400; $500

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