Explain how many hats should be in inventory, Operation Management

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The Bryant Museum is open 360 days per year. On average, they sell 3 hounds tooth hats per day. Each hat sells for $16. The museum%u2019s holding cost is $1 / hat / month. Each order costs $10 to place and has a lead time of 20 days. How many hats should be in inventory when they place another order for hats?

a. 147 hats b. 120 hats c. 92 hats d. 60 hats

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