Question: The ordering cost on a per unit basis is USD 2 5 0 . Monthly demand is 5 , 0 0 0 . The cost

The ordering cost on a per unit basis is USD 250. Monthly demand is 5,000. The cost of holding one unit for one month is USD 1.
How many units should the company order each month and how many orders should it make each year?
1,581 orders for each order /37 orders per year
5,477 orders for each order /12 orders per year
1,581 orders for each order /38 orders per year
5,477 orders for each order /11 orders per year

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