4. One of the product lines carried by Farha Wholesale Foods was a line of canned fruit manufactured by California Canners. Mr. Jones, the canned goods buyer, knew that the company did not reorder from its suppliers in a systematic manner and wondered if the EOQ model might be appropriate. For example, the company ordered 200 cases of fruit cocktail each week, and the annual volume was about 10,000 cases.

The purchase price was $8 per case, the ordering cost was $15 per order, and the inventory carrying cost was 35 percent. California Canners paid the transportation charges, and there were no price breaks for ordering quantities in excess of 200 cases. Does the economic order quantity model apply in this situation? If so, calculate the economic order quantity.