Thermo Scientific supplies vials to medical labs throughout the country. Thermo Scientific purchases the vials from a manufacturer which has a reputation for very high quality in its manufacturing operation.

Annual demand (weekly demand=1/52 of annual demand) 500 units

Per unit carrying cost $20

Lead time in days 10 days

Cost of placing an order $98

1. What is the economic order quantity?

Group of answer choices

70 units

20 units

1,040 units

15 units

2. What are the annual relevant ordering costs, assuming each order was made at an economic-order-quantity amount of 100?

Group of answer choices

$100

$49,000

$2,000

$490