The Annual Demand for a Product Has Been Projected at 2,000

question 131

Multiple Choice

The annual demand for a product has been projected at 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.The purchase cost is $40 per unit.There are 250 working days per year.Currently, the company is ordering 500 units each time an order is placed.Assuming the company uses a safety stock of 20 units resulting in a reorder point of 60 units, what is the expected lead-time for delivery?

• A)4 days
• B)5 days
• C)6 days
• D)7 days

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Definitions:

Tertiary Structure

The three-dimensional structure of a protein molecule formed by bends and folds that are stabilized by various bonds and interactions among amino acids.

Protein Molecule

A large, complex molecule made up of one or more chains of amino acids, essential for the structure, function, and regulation of the body's tissues and organs.

Polypeptide Chain

A single linear chain of amino acids bound together by peptide bonds, forming part of or the whole protein molecule.

Ionic Bonds

Chemical bonds formed between two ions with opposite charges through the transfer of electrons.