Aberwald Corporation Expects to Order 126,000 Memory Chips for Inventory

question 20

Multiple Choice

Aberwald Corporation 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.)
-What is the economic ordering quantity
For chips?

• A) 12,088
• B) 3,175
• C) 6,243
• D) 13,675
• E) 8,124

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Definitions:

Disinfectant Solutions

Chemical substances used to eliminate or reduce harmful microorganisms on surfaces, in liquids, or in air, ensuring hygiene and preventing the spread of infections.

Immersion

involves deeply engaging or involving oneself in a particular activity or subject.

Alcohol

A volatile, flammable, colorless liquid that is the principal ingredient of alcoholic beverages, also used as a solvent and in thermometers.

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A set of sterile practices and procedures used to prevent the introduction of pathogens to a surgical wound or sterile field during medical procedures.