Mark Achin Sells 3,600 Electric Motors Each Year

question 132

Multiple Choice

Mark Achin sells 3,600 electric motors each year.The cost of these is $200 each, and demand is constant throughout the year.The cost of placing an order is $40, while the holding cost is $20 per unit per year.There are 360 working days per year and the lead-time is 5 days.What is his economic order quantity in units?

• A)100
• B)200
• C)60
• D)120

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Definitions:

Psychological Power

The influence or control over others' beliefs, emotions, or behaviors through persuasive, charismatic, or leadership abilities, rather than through coercion or force.

Referent Power

A form of power that arises from being admired, respected, or identified with, often leading to influence due to personal traits rather than formal authority.

Expert Power

A form of influence based on the possession of expertise, knowledge, or skill that others need or value.

Valued Information

Information considered to be of significant importance or benefit to its recipients, often influencing decision-making processes.