Fixed-order quantity inventory model

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A company is planning for its financing needs and uses the basic fixed-order quantity inventory model. Which of the following is the total cost (TC) of the inventory given an annual demand of 10,000, setup cost of $32, a holding cost per unit per year of $4, an EOQ of 400 units, and a cost per unit of inventory of $150?

A) $1,501,600
B) $1,501,600
C) $500,687
D) $500,687
E) None of the above

Reference no: EM1392100

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