Question 8:

Appliance for Less is a local appliance store. It costs this store $19.43 per unit annually for storage, insurance, etc., to hold microwave in their inventory. Sales this year are anticipated to be 765 units. Each order costs $80. The company is using Economic Order Quantity model in placing the orders. What is the average inventory held during the year including safety stock if the store insists on a 3 days safety stock (assume 365 days a year)? ( Round the answer to the whole number)