Expected annual usage of a particular raw material is 180,00 . units, and standard order size is 12,00 . units. The invoice cost of each unit is $300 . and the cost to place one purchase order is $80 . Assuming the company does not maintain safety stock, the average inventory is:
a. 10,00 . units.
b. 7,500 units.
c. 15,00 . units.
d. 6,00 . units.
d
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