Using the Simple Order Quantity Model in an Inventory Control

question 74

Multiple Choice

Using the simple order quantity model in an inventory control problem, Kathy calculated the order quantity to be 1,000 units. In a review, she found out that the demand is actually double that of the quantity she had used and the holding cost is only half that of the value she used. The new economic order quantity using the correct data will be

• A) 1,000.
• B) 2,000.
• C) 1,414.
• D) 707.1.
• E) cannot be found without other cost information.

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Definitions:

Personality Disorder

A type of mental disorder involving enduring patterns of inner experience and behavior that deviates significantly from the expectations of the individual's culture.

Anorexia Nervosa

An eating disorder characterized by an abnormally low body weight, an intense fear of gaining weight, and a distorted perception of weight or shape.

Distorted Perception

An inaccurate view or interpretation of something, often due to psychological factors affecting the perception of reality.

Antisocial Personality Disorder

A mental disorder characterized by a long-term pattern of disregard for, or violation of, the rights of others.