If the order quantity per order is 2,000 units, annual demand is 10,000, and cost per order is $50, then which of the following statements is true?
a. There are 15 orders in the year.
b. The average inventory is 1,000 units.
c. The holding cost per unit is $2.50.
d. The total annual holding costs are $25,000 (= $2.50 * 10000).
b. The average inventory is 1,000 units.
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