If Annual Demand Is 12,000 Units, the Ordering Cost Is

question 90

Multiple Choice

If annual demand is 12,000 units, the ordering cost is $6 per order, and the holding cost is $2.50 per unit per year, which of the following is the optimal order quantity using the fixed-order-quantity model?

• A) 576
• B) 240
• C) 120.4
• D) 60.56
• E) 56.03

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Definitions:

Controversial Policy

A policy that generates significant debate or disagreement among groups or individuals due to differing values, beliefs, or interests.

Rich Communication Medium

A rich communication medium is a method of communication that can transmit immediate feedback and multiple cues (such as tone, facial expressions, and body language), enhancing the quality and depth of communication.

Computer-Mediated Communication

The exchange of messages between individuals or groups through the use of digital platforms or devices.

360-Degree Feedback

A performance appraisal system where an employee is evaluated by feedback collected from their supervisors, peers, subordinates, and sometimes themselves.