Problem:
Cheesburger and Taco Company purchases 7,899 boxes of cheese each year. It costs $21 to place and ship each order and $2.35 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.
Required:
Question: What is the average inventory held during the year?
- 250 units
- 188 units
- 987 units
- 376 units
Note: Please show how to work it out.