Question: Use this information to answer the last five questions. A company sells a product that has an annual demand of 9,000 units. The purchase price

Use this information to answer the last five questions.

A company sells a product that has an annual demand of 9,000 units. The purchase price is $15 per unit, and placing an order costs $25. The annual inventory carrying cost for the warehouse and in-transit shipping are 35% and 15% of the unit cost, respectively. In-transit shipping time for this item is 5 days. The company operates 360 days per year.

How many units are in the average in-transit inventory?
What is the annual in-transit inventory carrying cost
What is the EOQ for this product?

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