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

question 88

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.Currently, the purchase cost is $40 per unit.There are 250 working days per year.Whenever an order is placed, it is known that the entire order will arrive on a truck in 6 days.How many units should the company order each time an order is placed if the company wishes to minimize total inventory cost?

• A)100
• B)200
• C)250
• D)500

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Definitions:

Worker Participation

The involvement of employees in decision-making processes within their workplace, often through mechanisms like staff meetings, suggestion boxes, and joint committees.

Empowerment

The process of increasing the capacity of individuals or groups to make choices and transform those choices into desired actions and outcomes.

Mobilization

The process of assembling and preparing groups, resources, or individuals for action, especially in social, political, or labor contexts.

Grassroots Participation

The involvement of regular individuals, typically at the local level, in the creation, development, or mobilization of initiatives, emphasizing bottom-up decision making.