A Company Has Collected the Following Inventory Data for an Item

question 23

Multiple Choice

A company has collected the following inventory data for an item. What is the total annual cost for this item? $\begin{array}{llcc} \text { Annual demand for the item } & \text {D=500}\\ \text { Unit purchase cost for the item } &\text {C=10}\\ \text { Fixed cost of placing an order } &\text {S=20}\\ \text { Cost of holding one unit in inventory for a year } &\text {i=30\%}\\ \text { Order quantity } &\text {Q=50}\\\end{array}$

• A) 275
• B) 450
• C) 5,275
• D) 5,450

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Definitions:

Just-World Hypothesis

The cognitive bias or belief that the world is fundamentally fair, leading individuals to rationalize an otherwise inexplicable injustice as deserved by the victim.

Social Group

A collection of individuals who interact with each other and share similar characteristics and a sense of unity.

Punished

The act of imposing a penalty or negative consequence on someone as a response to an undesirable behavior or action.

Social Norm

Unwritten rules or expectations for behavior in a given group or society.