Choose the Best Estimate from the List $\frac { 107 } { 405 }$

question 58

Multiple Choice

Choose the best estimate from the list.
- $\frac { 107 } { 405 }$ is approximately $\frac { 1 } { 16 } , \frac { 1 } { 8 } , \frac { 1 } { 4 } , \frac { 1 } { 2 }$ .

• A) \(\frac { 1 } { 8 }\)
• B) \(\frac { 1 } { 16 }\)
• C) \(\frac { 1 } { 2 }\)
• D) \(\frac { 1 } { 4 }\)

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Definitions:

Ordering Cost

The expenses incurred in placing and processing orders to suppliers.

EOQ Model

Economic Order Quantity Model, an inventory management formula that determines the optimal order size to minimize the sum of ordering, carrying, and stockout costs.

Inventory Management

The practice of overseeing and controlling the ordering, storage, and use of components or finished goods held in stock.

Inventory Carrying Charge

The total cost associated with holding inventory in stock, including storage, insurance, taxes, depreciation, and opportunity costs.