A Shoe Business Meets the Qualifications for Using the Economic

question 29

Multiple Choice

A shoe business meets the qualifications for using the economic order quantity (EOQ) model.The business sells 20,000 pairs of shoes per year.Ordering costs for supplies are $12 per order.Holding costs are $0.96 per pair of shoes per year.What is the EOQ for this business?

• A) 500
• B) 708
• C) 1,667
• D) 19,200

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Definitions:

Sense

A physiological capacity of organisms that provides data for perception, such as sight, sound, smell, taste, touch, and proprioception.

Vision

Vision is the faculty of the eyes to perceive the environment through the light that enters them, allowing humans and other organisms to navigate, identify, and interact with their surroundings.

Hearing

The sensory process by which sound is perceived through the ears and interpreted by the brain.

Smell

A sense involving the detection and identification of molecules in the air, processed by olfactory sensors in the nose.