Consider a firm with a daily demand of 100 units, a production rate per day of 500 units, a setup cost of $200, and an annual holding cost per unit of $10. Suppose that the firm How many units of inventory must their storage area be able to hold? OA. 1095 OB. 876 OC. 9798 OD. 1225 O E. 1081 OF. 980

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Consider a firm with a daily demand of 100 units, a production rate per day of 500 units, a setup cost of $200, and an annual holding cost per unit of $10. Suppose that the firm operates 300 days per year.
How many units of inventory must their storage area be able to hold?
A. 1095
B. 876
C. 9798
D. 1225
E. 1081
980
O F.
Transcribed Image Text:Consider a firm with a daily demand of 100 units, a production rate per day of 500 units, a setup cost of $200, and an annual holding cost per unit of $10. Suppose that the firm operates 300 days per year. How many units of inventory must their storage area be able to hold? A. 1095 B. 876 C. 9798 D. 1225 E. 1081 980 O F.
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