Question: Peterson Enterprises uses a fixed order quantity inventory control system. The firm operates 5 0 weeks per year and has the following characteristics for an

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 = $30/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
What is the total order and inventory-holding cost?

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