i) In an inventory problem, the order quantity is equal to 500. Annual holding cost is equal to $6 per unit. If the order quantity is twice as big as EOQ, the optimal total inventory cost is equal to

3,000

250

1,500

6,000

ii)

A phone company has annual demand of 10,000. A component has annual holding cost of $6 per unit, and ordering cost of $48. Number of days per year is equal to 250. If we order 500 units in each cycle,

Ordering cost is equal to holding cost

Ordering cost is greater than holding cost.

Ordering cost is less than holding cost.