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

question 36

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.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 level of safety stock would give a reorder point of 60 units?

• A)10
• B)14
• C)18
• D)12
• E)22

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Definitions:

Neurons

Basic units of the nervous system that process and transmit information through electrical and chemical signals.

Interneurons

Neurons that transmit signals between sensory and motor neurons, playing critical roles in reflexes and neuronal circuits.

Myelin Sheets

Protective coverings around nerve fibers in the brain, spinal cord, and peripheral nerves, made of myelin, which help in the rapid transmission of electrical signals.

Sensory Information

Data that is perceived by the senses (sight, hearing, smell, taste, touch) and transmitted to the brain for processing.