Question: Peterson Enterprises uses a fixed order quantity inventory control system. The firm operates 50 weeks per year and has the following characteristics for an item:

Peterson Enterprises uses a fixed order quantity inventory control system. The firm operates 50 weeks per year and has the following characteristics for an item: Demand =50,000 units / year Ordering cost =$35/ order Inventory-carrying cost as a percent of item value =25% Item (Unit) value =$8 Lead time =3 weeks Standard deviation in weekly demand =125 units Calculate the economic order quantity (EOQ) for this item? 1323 1231 2341 3211

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