Question $3$

$2$ Points

TechnoTech sells electronic equipment that includes valves. James is their buyer. One of the valves has an annual demand of four thousand units. The cost of each valve is ninety Rand, and the inventory carrying cost is estimated to be ten percent of the cost of each valve. James has studied the costs involved in placing an order for any of the valves that TechnoTech stocks, and he has concluded that the average ordering cost is twenty$-$five rand per order. Furthermore, it takes about two weeks for an order to arrive from the supplier, and during this time, the demand per week for the valves is approximately eighty. What is the total annual holding cost?

$90$

$671\mathrm{.}25$

$74\mathrm{.}5$

$670\mathrm{.}50$

None of the above