The annual demand for a product has been projected to be 2,000 units. This demand is assumed to be constant throughout the year. The ordering cost is $20 per order, and the holding cost is 20 percent of the purchase cost. Currently, the purchase cost is $40 per unit. There are 250 working days per year. Whenever an order is placed, it is known that the entire order will arrive on a truck in six days. If the total holding cost for the year is $2,000, how many units does the company order at a time?
- 300
- 400
- 500
- 600
- none of the above