Question: A distributor uses 1000 pallets a month, which it purchases at a cost of $20 each. The estimated annual carrying cost of inventory is 25%

A distributor uses 1000 pallets a month, which it purchases at a cost of $20 each. The estimated annual carrying cost of inventory is 25% of the purchase price per pallet. The fixed cost of ordering is $1200. What is the optimal quantity of pallets is 2400. how many days of cycle inventory would be carried under an order quantity of 3000 pallets? Choose the closest answer

Greater than 365 days

60 days

45 days

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