Cindy's Toys Has an Average Inventory of 1,800 Teething Rings

question 375

Multiple Choice

Cindy's Toys has an average inventory of 1,800 teething rings. The carrying cost per unit per year is 5¢. Cindy places an order for 3,600 teething rings on the first of each month and the order cost is $25. What is the economic order quantity (EOQ) ?

• A) 4,502 units
• B) 5,193 units
• C) 5,492 units
• D) 6,573 units
• E) 6,600 units

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Definitions:

Buffer

A means or mechanism that reduces the impact of external changes or stresses, maintaining stability in a system or process.

Stress

A physical, mental, or emotional reaction to external pressures or demands that can affect an individual's overall sense of well-being.

Stress Related Disease

Health conditions that are directly or indirectly caused by or exacerbated by stress.

Social Support

Refers to the perception and actuality that one is cared for, has assistance available from other people, and is part of a supportive social network.