Figure 24-1 Mrs. Brown's Bagel Company Manufactures Specialty Bagels. the Company Buys

question 6

Multiple Choice

Figure 24-1
Mrs. Brown's Bagel Company manufactures specialty bagels. The company buys flour in 50-kg bags that cost £25 each. The company uses 10,000 bags per year, and usage occurs evenly throughout the year.
The average cost to carry a 50-kg bag in inventory per year is £4, and the cost to place an order is £10.
The company works 250 days per year.
Mrs. Brown's Bagel Company manufactures specialty bagels. The company buys flour in 50-kg bags that cost £25 each. The company uses 10,000 bags per year, and usage occurs evenly throughout the year.
The average cost to carry a 50-kg bag in inventory per year is £4, and the cost to place an order is £10.
The company works 250 days per year.
-Refer to Figure 24-1. If Brown's lead time is three working days and the average rate of usage is 40 bags per day, the reorder point would be

• A)140 bags.
• B)120 bags.
• C)100 bags.
• D)80 bags.

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Definitions:

Colostrum

The first form of milk produced by the mammary glands of mammals (including humans) immediately following delivery of the newborn, rich in antibodies and nutrients.

Lactation

The secretion of milk by the mammary glands of a postpartum female, providing nourishment to the newborn.

Nipples

Specialized body structures located on the chest that can secrete milk in females and are present in both sexes without milk-producing function in males.

Preeclampsia

A pregnancy complication characterized by high blood pressure and signs of damage to another organ system, most often the liver and kidneys.