Consider a basic economic order quantity (EOQ) model with the
following characteristics:
Item cost:			$15
Item selling price:			$20
Monthly demand:			500 units (constant)
Annual holding cost:			$1.35 per unit
Cost per order:			$18
Order lead time:			5 working days
Firm's work year:			300 days (50 weeks @ 6 days per week)
Safety stock:			15% of monthly demand
For this problem, determine the values of:

Suppose the vendor demands purchases in multiples of 500 only. What is the increase in total annual inventory cost that this causes?

Select one:

a. None of the other

b. $0.00

c. $337.50

d. $67.50

e. $13.50