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The projected demand rate for an inventory item is 3 0 0 units per week, and we use the item 5 2 weeks per year

The projected demand rate for an inventory item is 300 units per week, and we use the item 52 weeks per year We buy the item at a cost of $30 per unit. Our fixed ordering cost ("S") is $100 per order, and our annual carrying cost rate is 20%. Our current ordering policy is to buy this item using an order quantity Q =500 units each time we reorder. Compute the long run average annual ordering cost (AOC) if we use the (rounded) EOQ order quantity computed above.

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