Demand for the Desk Pro computer at Best Buy is fairly constant day-to-day at a rate of 1,000 units per month. Best Buy incurs a fixed order placement, transportation, and receiving cost of $4,000 each time an order is placed. Each computer costs Best Buy $500 and the retailer has an annual holding cost of 20% of the item’s value (i.e., 0.20*$500). If Best Buy orders 1,500 Desk Pro computers each time an order is placed then its average inventory would be
1,500 b. 1,000 c. 750 d. 500