A store sells four packs of Camel cigarettes each day. Ordering cost is $8.00 per order, and Camel cigarettes cost $3.20 per pack. Three days after an order is placed, it is received. Daily holding costs are equal to 5% of the cost of the cigarettes.

If the store orders 16 packs of Camel cigarettes each time, what is the average inventory level?


A store sells four packs of Camel cigarettes each day. Ordering cost is $8.00 per order, and Camel cigarettes cost $3.20 per pack. Three days after an order is placed, it is received. Daily holding costs are equal to 5% of the cost of the cigarettes.

If the store orders 16 packs of Camel cigarettes each time, what is the average inventory level?


8 packs

20 packs

4 packs

12 packs

16 packs