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:

Job Rotation

A workplace strategy involving the periodic transfer of employees between different jobs or tasks to broaden their skills and reduce monotony.

On-The-Job Training

Training provided to employees at their workplace while they are doing their actual job tasks, often involving hands-on experience.

Programmed Learning

An educational technique that utilizes a series of self-paced and structured learning materials, allowing individuals to learn at their own pace with immediate feedback.

Off-The-Job Training Techniques

Training methods employed outside the usual work environment to develop skills and knowledge.