Jerry Allison Is in Charge of Production for a Small

question 3

Multiple Choice

Jerry Allison is in charge of production for a small producer of plumbing supplies. The cricket model has an estimated annual demand of 12,000 units and can be produced at a production rate of 90 units per day. The company produces (and sells) the cricket 300 days per year. Setup cost to produce this model averages $22 and the item has a holding cost of $3 per unit per year.
-Use the information in Scenario D.1.How many production runs per year are needed if Jerry chooses to produce at his economic production lot size (ELS) ?

• A) Fewer than or equal to 10 runs
• B) Greater than 10 runs but fewer than or equal to 20 runs
• C) Greater than 20 runs but fewer than or equal to 30 runs
• D) Greater than 30 runs

---

Definitions:

Innervation

The supply of nerves to a specific body part, responsible for its sensory and motor functions.

Skeletal Muscles

Muscles attached to bones that are responsible for voluntary movements of the body.

Deceptive

Intentionally misleading or creating a false impression in order to achieve a specific purpose.

Promotional Message

A communication sent with the intent of promoting a product, service, or event to potential customers.