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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A standard score scale in statistics that measures how many standard deviations an element is from the mean of the population.

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