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Rajesh Indian Market ( RIM ) is open 1 2 months out of the year. At RIM, the demand for rice is very consistent 2

Rajesh Indian Market (RIM) is open 12 months out of the year. At RIM, the demand for rice is very consistent 200 pounds per month. RIM orders the rice from a distributor in India at an ordering cost of $50 per order. Rice costs $5 per pound, and annual carrying charge is 15%. Answer questions based on this information.
Q2. How many orders will RIM place in a year? (round up to the nearest whole number)
a.2 orders
b.3 orders
c.4 orders
d.5 orders
Q3. What is the average inventory? (round up to the nearest whole number)
a.1200 units
b.283 units
c.250 units
d.275 units
Q4. What is the inventory turnover (based on the rounded up number of average inventory)?
a.8.48 times
b.0.7 times
c.10.49 times
d.10.5 times
Q5. What is the annual ordering cost (based on the rounded up number of orders)?
a. $150
b. $175
c. $200
d. $250

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