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The annual demand for a product has been projected at 2,000 units. This demand is assumed to be constant throughout the year. The ordering cost
The annual demand for a product has been projected at 2,000 units. This demand is assumed to be constant throughout the year. The ordering cost is $20 per order, and the holding cost is 20 percent of the purchase cost. Currently, the purchase cost is $40 per unit. There are 250 working days per year. Whenever an order is placed, it is known that the entire order will arrive on a truck in 6 days. How many units should the company order each time an order is placed if the company wishes to minimize total inventory cost? Select one: A 250 B. 500 C. 100 D. 200 E None of the above
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