Question: Use the information below to answer the following question : At Buckeye Tech Warehouse ( BTW ) , the annual demand for a pair of

Use the information below to answer the following question : At Buckeye Tech Warehouse ( BTW ), the annual demand for a pair of headphones is 300,000 units , the order cost is $ 480, and the purchase cost is $ 130 per set of headphones . The cost of carrying inventory is 30% of the item cost . They distribute their headphones from two facilities , one in Detroit and one in Austin , and carries about 8,000 pairs of headphones on - hand at a given time . BTW is considering a change to the number of orders they place during the year in order to meet their annual demand . What would be the impact of increasing to ordering 40 times per year , instead of 30? A decrease in order quantity of 2,500 pairs of headphones No inventory or order quantity impact An increase in annual demand of 20,000 pairs of headphones An inventory increase to roughly 12,000 pairs of headphones

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