(Questions 8-10)

A rm that sells 10,500 blivets per month is trying to determine how many blivets to keep in inventory. The nancial manager has determined that it costs $300 to place an order. The value of the blivet is $12.00 and the cost of holding inventory is 20% of the value per year based on average blivet in inventory. A ve-day lead time is required for delivery of goods ordered. (This lead time is known with certainty.)

What is the economic ordering quantity?

Group of answer choices

3968.63

1620.19

5612.49

None of them

1145.64

Flag question: Question 9

Question 96 pts

What is the total inventory cost (ordering cost and holding cost) at the EOQ?

Group of answer choices

$2,106.24

$2,864.11

None of them

$1,058.86

$1,122.50

$1,190.59