Use This Information Below to Calculate the Optimal Order Quantity

question 34

Multiple Choice

Use this information below to calculate the optimal order quantity:
Annual demand for backpacks is 43,000 units
The cost to place an order is $220
The per unit cost of the item is $60.00
The annual holding rate is 37.5%
Choose the closest answer.

• A)920 units
• B)250 units
• C)710 units
• D)830 units

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Definitions:

Literacy

The ability to read and write at a level that allows an individual to function and communicate effectively in society.

Risk Factor

A characteristic, condition, or behavior that increases the likelihood of developing a disease or injury.

Lifestyle Change

Modifications to an individual's daily habits and behaviors, such as diet and exercise, aimed at improving health.

Odds

A measure of the likelihood of a particular outcome in a situation or event.