It costs 50 to place an order for inventory item q54, Operation Management

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It costs 50 to place an order for inventory item q54

Question: It costs $50 to place an order for inventory item Q54 regardeless of the order quanittiy. Demand for Q54 is 250 units per month, and holding costs (annual) for Q54 has been estimated to be $1.94. If the economically optimal order quantity for Q54 is used, on average how many order for Q54 will be placed per year?

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Operation Management: It costs 50 to place an order for inventory item q54

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