You are in charge of managing the inventory of SKU Y914L that has very steady demand of 330 items per month, with no visible trend or seasonality.

The cost of SKU Y914L is 135 $/item and your firm uses an annual holding charge of 0.2 $/$/year (recall this is the same thing as saying 20 percent per year). You have found that there are two components to the ordering costs: labor and transportation. Labor costs are 57 $/order and transportation costs are 124 $/order - regardless of the number of items in the order. You sell each item for 270 $/item.

You must order in multiples of 10 since they come in cases of 10 each - so round to the nearest multiple of 10. Assume 12 months per year.

What should your order size be in terms of items (not cases)?