Annual Demand for a Product Is 40,000 Units

question 89

Multiple Choice

Annual demand for a product is 40,000 units.The product is used at a constant rate over the 365 days the company is open every year.The annual holding cost for the product is estimated to be $2.50 per unit,and the cost of placing each order is $125.00.If the company orders according to the economic order quantity (EOQ) formula,then the time between orders (order cycle time) is

• A)18.25 days.
• B)24.33 days.
• C)36.5 days.
• D)73 days.

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Definitions:

Full Employment

A situation in which all available labor resources are being used in the most economically efficient way.

Workers Demanded

The number of employees that employers are willing to hire at a given wage rate.

Economic Immigration

The movement of individuals to a new country with the aim of gaining employment or pursuing investment opportunities, often contributing to the host country's economy.

Standard of Living

The degree of wealth, comfort, material goods, and necessities available to a person, group, or nation.