In the basic EOQ model, if Demand is 3000 per month, Fixed cost is $200 per order, unit cost is $50, and holding cost per year as a fraction of unit cost is 5%.

a) what is the economic order quantity?

1. About 700
2. About 1400
3. About 2400
4. About 1000
5. About 2000
6. None of the above

b) Reconsider a), what is the total annual inventory cost?

1. About $1,806,000
2. About $1,255,000
3. About $500,000
4. About $151,732
5. About $251,732
6. None of the above.

c) Reconsider a), what is the total annual inventory cost if the company makes an order every month?

1. About $1,806,000
2. About $1,255,000
3. About $1,806,150
4. About $151,732
5. About $251,732
6. None of the above.

d) Reconsider a), what is the total annual inventory cost if the company makes an order every year?

1. About $1,806,000
2. About $1,255,000
3. About $1,806,150
4. About $151,732
5. About $1,845,200
6. None of the above.