A Restaurant Currently Uses 62,500 Boxes of Napkins Each Year

question 71

Multiple Choice

A restaurant currently uses 62,500 boxes of napkins each year at a constant daily rate. The cost to order napkins is $200.00 per order and the annual carrying cost for one box of napkins is $1.00. If the restaurant orders the economic order quantity then the average inventory for napkins is

• A) 62,500 boxes.
• B) 31,250 boxes.
• C) 5,000 boxes.
• D) 2,500 boxes.

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Definitions:

Welded

The process of joining materials, usually metals or thermoplastics, by causing coalescence through heat, pressure, or both.

Outside Diameter

The outside diameter is the longest distance across the outer surface of a round object or pipe, measured from one point on the edge, through the center, to the opposite edge.

Wall Thicknesses

The specified thickness of the wall of a part, critical in determining its strength and functionality.

Schedule

In the context of manufacturing or project management, it typically refers to a planned timeline for production or activities.