Cynthia Korinsky, Manager of a Large Medical Supply House That $= 10,000$

question 93

Multiple Choice

Cynthia Korinsky, manager of a large medical supply house that operates 50 weeks per year and 5 days per week, has decided to implement a periodic review system for all class A items. One such item has the following characteristics:
Demand $= 10,000$ units/year (or 40 units per workday)
Order cost $= \$ 50 /$ order
Holding cost $= \$ 5 /$ unit/year
If Korinsky wishes to minimize total cost (thereby approximating the EOQ) , what should be P, the number of workdays between orders?

• A) less than or equal to 10 days
• B) greater than 10 days but less than or equal to 12 days
• C) greater than 12 days but less than or equal to 14 days
• D) greater than 14 days

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