Question

Average demand for a particular item is 1,200 units per year. It costs $100 to place an order for this item, and it costs $24 to hold one unit of this item in inventory for one year. If the fixed-order-interval model is chosen in this instance, how often (on average) will this item be ordered?

A. once a month

B. once every other month

C. twice a month

D. twice every three months

E. three times every two months

Answer

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