Question: Suppose that a plant manager uses economic batch sizes for production of a product. Suppose further that the setup cost is $80 per batch, the

Suppose that a plant manager uses economic batch sizes for production of a product. Suppose further that the setup cost is $80 per batch, the holding cost per unit per year is $5, the annual demand is 48,000 units, the firm operates (and experiences demand) 300 days per year, and the production rate per day is 200 units. What will be the maximum inventory level in units that this product ever reaches?

A.577

B.418

C.519

D.554

E.None of the above

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