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

question 84

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.Currently,the company is ordering 500 units each time an order is placed.What should be the reorder point (excluding any safety stock) under the current policy?

• A)48
• B)100
• C)6
• D)24
• E)None of the above

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Definitions:

Thoracic Vertebrae

The twelve vertebrae located in the middle section of the vertebral column, corresponding to the chest area.

Vertebra Prominens

The vertebra prominens refers to the most prominent vertebra, usually the C7 vertebra, marked by a longer and more palpable spinous process.

Axis

The second cervical vertebra (C2) of the spine, which allows the head to rotate.

Dens of the Axis

A prominent feature of the second cervical vertebra (axis), providing a pivot that allows the head and the atlas to rotate around the spinal axis.