Exhibit Cartwright Computing Cartwright Computing Expects to Order 126,000 Memory Chips for Inventory

question 1

Multiple Choice

Exhibit Cartwright Computing
Cartwright Computing expects to order 126,000 memory chips for inventory during the coming year, and it will use this inventory at a constant rate.Fixed ordering costs are $200 per order; the purchase price per chip is $25; and the firm's inventory carrying costs is equal to 20 percent of the purchase price.(Assume a 360-day year.)
-Refer to Exhibit Cartwright Computing.Assume that Cartwright holds a safety stock equal to a 30-day supply of chips.What is the maximum amount of inventory that will have on hand at any time, that is, what will be the inventory level right after a delivery is made?

• A) 9,216
• B) 3,175
• C) 6,243
• D) 13,675
• E) 8,124

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Definitions:

Encoding Failure

A situation where information does not get stored in memory, often leading to an inability to recall or recognize the information later.

Anterograde Amnesia

A condition in which an individual is unable to form new memories following the onset of amnesia.

Massed Practice

A learning strategy that involves intensive, continuous sessions of practice or study without rest intervals.

Distributed Practice

A learning strategy that involves spreading out study sessions over time, rather than cramming them into a short period.