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

question 117

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. Due to new ordering procedures initiated by Crittenden, the ordering cost is dropping to $4/order. At the same time, the weekly demand increases to 64 units per week due to an increase in business. What effect do these changes have on the EOQ quantity for this item?

• A) The EOQ quantity increases by 20 percent.
• B) The EOQ quantity remains unchanged.
• C) The EOQ quantity decreases by 20 percent.
• D) Sufficient information is not available for answering this question.

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Definitions:

Fill Pores

Filling pores refers to the process of occupying the void spaces in a material, such as soil or rock, with a substance like water, air, or other materials.

Neuroleptics

A class of medication primarily used to manage psychosis, particularly in schizophrenia and bipolar disorder, also known as antipsychotics.

Bipolar Disorder

A mental health condition characterized by extreme mood swings, including emotional highs (mania or hypomania) and lows (depression).

Lithium

A chemical element often used in the treatment of bipolar disorder and other mood disorders.