Table $5.2$ Consider the Following Data for an Independent Demand Item Maintained

question 30

Multiple Choice

Table $5.2$
Consider the following data for an independent demand item maintained by Vicki Crittenden, the proprietor of a local auto repair shop:


-Use the information in Table 5.2. If Crittenden uses the EOQ model, how frequently must she place orders for this item?

• A) every week
• B) every 2 weeks
• C) every 3 weeks
• D) every 4 weeks

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Definitions:

Ending Inventory

The overall price of items available for selling at the end of a fiscal period.

Inventory Units

Quantities of goods held by a business for the purpose of sale or production.

Purchase Discounts

Reductions in the purchase price of goods, usually provided by a supplier to the buyer for early payment or bulk buying.

Net Price Method

A pricing strategy that considers the net cost of a product after deducting any discounts or allowances.