The Electronics Store Begins Each Week with 60 Gadgets in Stock

question 77

Multiple Choice

The Electronics Store begins each week with 60 gadgets in stock. This stock is depleted and reordered weekly. The carrying cost per gadget is $21 per year and the fixed order cost is $45. What is the optimal number of orders that should be placed each year?

• A) 19
• B) 27
• C) 23
• D) 15
• E) 33

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Definitions:

Resources

Resources are assets, materials, and inputs needed by an organization or individual to produce goods or services.

Management

The process of planning, organizing, leading, and controlling resources to achieve specific goals within an organization.

Primary Funding

The initial capital provided to start a business or venture, often used for early-stage development and operations.