Brenda Is the Owner of a Spa Store That Operates

question 2

Multiple Choice

Brenda is the owner of a spa store that operates 50 weeks per year. Spair Shampoo is a high margin stock keeping unit (SKU) , but the product goes out of stock frequently. She decides to use a fixed-quantity system (FQS) and orders boxes of Spair Shampoo containing 10 bottles per box from a vendor 160 miles away. She collects the following data with respect to the sales of Spair Shampoo.
$\begin{array} { | l | l | } \hline \text { Demand } & 10 \text { boxes per week } \\\hline \text { Order Cost } & \$ 40 \text { per order } \\\hline \text { Item Cost } & \$ 80 \text { per box per year } \\\hline \text { Inventory-Holding Cost } & 15 \text { percent per year } \\\hline \text { Lead Time } & 3 \text { weeks } \\\hline \text { Standard Deviation in Weekly Demand } & 6 \\\hline \text { Service Level } & 96 \text { percent } \\\hline\end{array}$
Using the given data, it can be concluded that the economic order quantity (EOQ) of the Spair Shampoo boxes is:

• A) less than 25 boxes.
• B) more than 25 but less than or equal to 35 boxes.
• C) more than 35 but less than or equal to 45 boxes.
• D) more than 55 boxes.

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Definitions:

Serotonin Deficiency

A lack of the neurotransmitter serotonin in the brain, which is associated with mood disorders like depression.

Dopamine Excess

A condition where there is an abnormally high level of dopamine in the brain, associated with certain psychiatric conditions and behaviors.

Experiencing Hopelessness

A state of despair or feeling a lack of hope, often associated with depression and a significant predictor of suicidal ideation.

Denial

A psychological defense mechanism where an individual refuses to accept reality or facts, often in response to a traumatic event.