A produce distributor uses 800 packing crates a month, which it purchases at a cost of $10 each. The manager has assigned an annual carrying cost of 35 percent of the purchase price per crate. Ordering costs are $28. Currently, the manager orders twice a month. What is their current ordering quantity? Note: Assume that the demand rate is constant and shortages are not allowed.
a. none of the listed
Monthly Usage = 800