Use the givens provided below to solve this problem.

Annual demand $=3200$

Ordering cost $=$$$1600$ per order

Holding cost $=25\%$ of unit cost

Unit cost $=$$$300$ per unit

Present lot size $=400$

Calculate the average inventory if the company used the EOQ as their lot size. Be sure to use the EOQ, they will no longer use the present lot size.

Choose the closest answer.

$185$

$200$

$226$

$140$

$78$