Discuss the below:
Q: ShinyAppliances, Inc. manufactures oven toasters for commercial market. Currently, ShinyAppliances is producing part 1004A. Next year's requirement for part 1004A is estimated at 20,000 units. Part 1004A is valued at $50 per unit and the holding cost of each unit is $8 per year. The cost of processing each order is $200. What is average inventory if ShinyAppliances uses Economic Order Quantity (EOQ) for ordering?