Use the Information Below to Answer the Following Question(s)

question 46

Multiple Choice

Use the information below to answer the following question(s) :
The materials manager for a billiard ball maker must periodically place orders for resin,one of the raw materials used in producing billiard balls.She knows that manufacturing uses resin at a rate of 50 kilograms each day,and that it costs $.04 per day to carry a kilogram of resin in inventory.She also knows that the order costs for resin are $100 per order,and that the lead time for delivery is four (4) days.Assume 365 days in a year.
-What is the economic order quantity (EOQ) for resin?

• A)50 kilograms
• B)100 kilograms
• C)200 kilograms
• D)500 kilograms

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Definitions:

Competition

The activity or condition of competing against others for the same objective or for superiority in a field.

Clayton Act

A piece of U.S. legislation aimed at increasing economic competition and preventing monopolies by prohibiting certain types of anti-competitive practices.

Lessen Competition

Strategies or situations that reduce the intensity of rivalry among existing competitors in a market.

Monopolization

The possession of monopoly power in the relevant market and the willful acquisition or maintenance of that power, as distinguished from growth or development as a consequence of a superior product, business acumen, or historic accident.