Jerry Allison Is in Charge of Production for a Small

question 22

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.If Jerry chooses to produce the batch size suggested by the economic production lot size (ELS) model,what is the annual cost?

• A) Less than or equal to $900
• B) Greater than $900 but less than or equal to $950
• C) Greater than $950 but less than or equal to $1000
• D) Greater than $1000

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Definitions:

Magnetic Lines of Flux

Imaginary lines used to represent the strength and direction of a magnetic field, flowing from the north to the south pole.

Flux Density

A measure of magnetic field strength, quantified as the amount of magnetic flux in a given area.

Inert Element

An inert element refers to a chemical element that exhibits very low reactivity due to having a full outer electron shell, such as noble gases.

Valence Shell

The outermost shell of electrons in an atom, important in determining an element's chemical properties.