The Canine Kennel uses 600 cases of dog food annually and orders 40 cases in each shipment. The annual carrying cost per case is $5 and the economic order quantity is 25 cases. Which one of these statements best applies to this situation?
a. The firm needs to reduce the number of orders placed per year.
b. The current annual ordering costs are less than the carrying costs.
c. The current annual ordering costs exceed $5 per case.
d. The firm needs to increase its average inventory level of dog food.