Question: Given the following data for a particular inventory item: Demand: 500 units per month Ordering Cost: $30 per order Holding Cost: $1 per unit per

Given the following data for a particular inventory item:

Demand: 500 units per month
Ordering Cost: $30 per order
Holding Cost: $1 per unit per year
Lead Time: 1.5 months
Price: $7.99 per unit
360 working days in a year

For the economic order quantity, what is the total annual ordering cost?

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