The cost to set up for producing a standard component is approximately $$300.$ Once set up they can produce at a rate of approximately $20$ units$/$day $(5,000$ units per year$)$ at $$100$ each.

Annual demand is forecast at $2,000$ units. If the firm uses a $30\%$ annual rate for holding inventory: $($Choose the nearest value from the given answers$)$

Q $=$ Square root of $[(2*$ D$*$ Co$)/(($Cc$)(1-$d$/$p$))]$ TC $=$ D$/$Q $($Co$)+1/2$ Q $(1-$d$/$p$)($Cc$)$

What is the level of inventory $($i$.$e$.,$ inventory rate $-$ the proportion of production that goes into inventory$)?$