If Your Company Had an Annual Purchase Cost of Items

question 7

Multiple Choice

If your company had an annual purchase cost of items equal to $2,000,000, an annual holding cost of $150,000 and an annual ordering cost of $50,000 this scenario would reveal that:

• A) Your order size was lower than the EOQ
• B) Your order lot size was equal to the EOQ
• C) Your order lot size was higher than the EOQ
• D) Nothing because there is insufficient information to discern where the EOQ would be.

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Definitions:

Adolescents

Individuals in the developmental stage between childhood and adulthood, typically between the ages of 13 and 19.

Susceptible

Likely or prone to be affected by a particular condition or occurrence.

Social Responsibility

The ethical theory that individuals and organizations are obligated to act for the benefit of society at large.

Volunteerism

The practice of offering one's time and services to community projects or organizations without financial compensation.