Carter Company Orders 250 Units at a Time,and Places 15

question 77

Multiple Choice

Carter Company orders 250 units at a time,and places 15 orders per year.Total ordering cost is $1,600 and total carrying cost is $1,250.Which of the following statements is true?

• A)the economic order quantity (EOQ)is 250
• B)the economic order quantity (EOQ)is more than 250
• C)the economic order quantity (EOQ)is less than 250
• D)total inventory-related cost is lower than it would be at the economic order quantity (EOQ)
• E)none of these

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