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

question 98

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
• E)None of the above

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Definitions:

Self-esteem

The perception and evaluation of one's own worth and abilities.

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A psychological state in which an individual is cognizant of their own personality or individuality.

Conceive

To form a notion or idea; to develop a plan or thought in the mind.

Psychological Terms

A collective reference to the vocabulary and terminology used within the field of psychology.