Use the Table Below to Answer the Following Questions) -Given That Q = Order Quantity, D = Annual Demand

question 59

Multiple Choice

Use the table below to answer the following questions) .
Shirley Templeton is a real estate agent for Paralol Realty. Shirley is given the responsibility to manage potential customers for 5 of the Realty's bungalows. These 5 bungalows are situated in close proximity. In order to make traveling easier, Shirley decides to move to a location closer to the 5 bungalows. The table below gives the location X and Y coordinates) of the 5 bungalows along with the number of trips she would have to make to each bungalow. Create a nonlinear model based on the data given in the table below noting that the objective is to reduce the weighted distance between Shirley's accommodation and the 5 bungalows. $$\begin{array} { | l | l | l | l | } \hline \text { Bungalow Location } & & & \\\hline & & & \\\hline \text { data } & & & \\\hline \text { Locatim } & \text { X-coardinate } & \text { Y-coardinate } & \text { Trips/Month } \\\hline \text { Bungaldw 1 } & 0 & 0 & 6 \\\hline \text { Bungaldw 2 } & 25 & 100 & 30 \\\hline \text { Bungaldw 3 } & 20 & 75 & 15 \\\hline \text { Bungaldw 4 } & 90 & 80 & 28 \\\hline \text { Bungaldw 5 } & 60 & 100 & 10 \\\hline\end{array}$$
-Given that Q = order quantity, D = annual demand, C = unit cost of the item, C0 = cost per order placed, i = inventory carrying charge per unit, which of the following represents the holding cost per unit?

• A) D/Q
• B) iC
• C) D/Q)C0
• D) iCQ/2

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Definitions:

Crossover Point

The point at which two or more different strategies, options, or paths yield the same result or value.

Discount Rate

Typically refers to the interest rate that central banks charge commercial banks for loans, serving as a reference rate in financial calculations.

Net Present Value

The differentiation in the now-value of cash transactions, both incoming and outgoing, over a defined period.

Profitability Index

Profitability Index is a financial metric that calculates the relative profitability of an investment by dividing the present value of future cash flows by the initial investment cost.