Question: For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model is 200 units, and the total annual inventory (carrying and setup)

For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model is 200 units, and the total annual inventory (carrying and setup) cost is $600. What is the average inventory level on hand per year for this item? Select one: a. 800 units b. 100 units C. 200 units d. 400 units e. 30 units Southern law firm has traditionally ordered ink refills 60 units at a time. The firm estimates that caryying cost is 40% of the $10 unit cost and that total annual demand is 960 units per year. The assumptions of the basic EOQ model are thought to apply. There are 240 working days per year. For what value of ordering cost per order would its action be optimal? Select one: a. $7.50 b. $30.00 c. $20.00 d. $15.00 e. $3.00

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