LTK Ltd uses the EOQ inventory management model and purchases $64000$ units of raw materials per year. the purchase price of the raw material is R$100$ per unit. the cost of holding one unit in inventory is R$12\mathrm{.}00$ per year. the cost of reordering and taking delivery is R$1500$ per order regardless of the size of the order.

experience has shown that the supplier of the raw materials can be unreliable and that the delivery period can range between one week and three wekks.

Required:

if the company wants to hold enough raw materials to ensure that it never runs out. calculate the owest inventory level at which raw material should be reordered.

A$.1231$ units

B$.2600$ units

C$.2462$ units

D$.3692$ units