On an Annual Requirement of 100 Items Spread Evenly Throughout

question 9

Multiple Choice

On an annual requirement of 100 items spread evenly throughout the year,any purchaser has an opportunity of buying all 100 units at a price of $100 each,or buying 10 units at a time at a price of $150.If the inventory carrying cost is 25 percent per year and assuming no ordering costs:

• A)buying 100 at a time will save the company $3,937.50 per year.
• B)buying 100 at a time will save the company $4,125 per year.
• C)buying 100 at a time will save the company $6,250 per year.
• D)buying 10 at a time will save the company $3,875 per year.
• E)buying 10 at a time will save the company $5,000 per year.

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Definitions:

Task Oriented

Refers to a focus and prioritization on carrying out specific tasks or achieving particular goals.

Responsible

Having an obligation to do something or the ability to act independently and make decisions without authorization.

Disciplined

Exhibiting self-control and behavior in accordance with rules or standards, often to achieve long-term goals.

Feared Self

An aspect of self-concept involving the representation of the person one is afraid of becoming, often including traits or characteristics viewed negatively.