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

  1. 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 holding cost?

    $300

    $250

    $50

    $280

    $87

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