Sterling Clips Sdn. Bhd. estimates that it will sell 10,000 porcelain clips next year. The average per unit carrying cost of the clips is RM10. The per order cost of ordering is RM250. Assume that Sterling Clips wants a safety stock of 200 clips. If it reorders the clips based on the economic order quantity (EOQ), what is its average inventory of porcelain clips (round to the nearest unit)?

Select one:

A. 454

B. 554

C. 654

D. 354