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

---

Definitions:

Bacterial Population

A bacterial population consists of a group of bacteria residing in a specific area, which can exhibit growth, mutual interactions, and adaptation to their environment.

Mutation

A change in the DNA sequence within a gene or chromosome of an organism leading to the creation of a new character or trait not found in the parental type.

Deoxyribonucleic Acid

A molecule that encodes an organism's genetic blueprint, commonly known as DNA.

Unpredictable Change

Refers to alterations in environmental, social, or other factors that cannot be anticipated with current knowledge or technology, often leading to significant impact on ecosystems or societies.