Question: ( Chapter 12: Economic Order Quantity) Pepsi Co. desires to control inventory levels so as to minimize the sum of holding and ordering costs. It

(Chapter 12: Economic Order Quantity) Pepsi Co. desires to control inventory levels so as to minimize the sum of holding and ordering costs. It costs the firm $20 to place an order. The firm estimates its holding cost percentage is 30% per year. Weekly demand is 100 units. The item costs $10 per unit.

If 200 units are ordered each time, approximately what is the total of annual holding & annual ordering costs? Assume 50 weeks each year.

A) $800

B) $500

C) $300

D) $258

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