A Company Annually Consumes 10,000 Units of Part

question 104

Multiple Choice

A company annually consumes 10,000 units of Part
C The carrying cost of this part is $2 per year and the ordering costs are $100.The company uses an order quantity of 500 units.By how much could the company reduce its total costs if it purchased the economic order quantity instead of 500 units?

• A)$500
• B)$2,000
• C)$2,500
• D)$0

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Definitions:

Occupied

Engaged or filled by someone or something, often referring to a space, room, or location currently in use.

Biohazardous Substances

Materials that pose a risk to human health and the environment due to their potentially infectious or hazardous nature.

Refrigerator

An electrical appliance used to keep food and drinks cold, preserving their freshness over a longer period.

Medical Record

A comprehensive document containing the history, diagnosis, treatment, and outcome of a patient's healthcare management.