Using the Fixed-Order-Quantity Model, Which of the Following Is the Total

question 94

Multiple Choice

Using the fixed-order-quantity model, which of the following is the total ordering cost of inventory given an annual demand of 36,000 units, a cost per order of $80, and a holding cost per unit per year of $4?

• A) $849
• B) $1,200
• C) $1,889
• D) $2,267
• E) $2,400

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Definitions:

Foreign Direct Investment

Investment made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country.

Automobile Factory

A manufacturing facility dedicated to producing automobiles, encompassing assembly lines and machinery specific to vehicle production.

Foreign Direct Investment

A company or individual from one country investing in another country by either setting up business operations or buying business assets there.

Foreign Portfolio Investment

Investment in a country's securities, such as stocks and bonds, by non-resident investors, not aiming for control but rather intended for financial return.