Question: A certain product costs $ 2 0 0 to order. The cost per unit is $ 2 5 and the cost to carry one unit

A certain product costs $
2
0
0
to order. The cost per unit is $
2
5
and the cost to carry one unit in inventory for
1
year is
2
0
%
of the value of the product. Monthly demand is
1
,
0
0
0
units. The company operates
5
days a week,
4
weeks per month.
Assume the company manufactures the unit instead of purchasing it
,
and so the replenishment is not immediate, but rather gradual over time. If the production rate is
7
5
0
units per day, what is the optimal order quantity? answer choices are: 890,980,1014,780

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