Southwestern Supply Company Has an Economic Order Quantity for Item

question 69

Multiple Choice

Southwestern Supply Company has an economic order quantity for item A of 200 units. The annual demand for the product is 5,000 units, and the cost of placing an order is $8. If the company operates 200 days a year and the lead time for the item is five days, what is the reorder point if a safety stock of 50 units is maintained?

• A)4 days
• B)50 units
• C)25 units
• D)175 units

---

Definitions:

Brain Activation

A process involving increased blood flow and neural activity in specific areas of the brain in response to various tasks or stimuli.

Nouns

Words that name people, places, things, or ideas.

Verbs

Words that describe actions, states, or occurrences and form the main part of the predicate of a sentence.

Prototype Theory

A theory in cognitive science that suggests concepts or category judgments are made by comparing new stimuli to the "best example" or prototype of that category.