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 costs

(Chapter 12: Economic Order Quantity) Pepsi Co.
(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. $500 $300 $800 $258

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