Scenario 9.9 "Gollee Those Cats Sure Go Through a Lot of Food

question 44

Multiple Choice

Scenario 9.9
"Gollee those cats sure go through a lot of food," Geoff exclaimed as he saw the shopping list pad that had been pre-printed with the words "cat food" at the top. He pondered a different approach to shopping for the furry little darlings, reviewed his shopping records, and discovered the following. The price of cat food has held steady at 89 cents per can. Despite feigning indifference, each of the seven cats nibbles their way through an average of one can per day, three hundred sixty five days a year. The price of gasoline has held constant at $3.50 per gallon and his pickup uses a gallon each way to the cat food store. The cost to hold a can of cat food is 10% of the unit price.
-Use the information in Scenario 9.9 to determine the average number of orders per year if Geoff adopts an EOQ policy.

• A) 3 orders per year
• B) 4 orders per year
• C) five orders per year
• D) six orders per year

---

Definitions:

Capital Account Balances

The values recorded in a country's or organization's financial accounts, related to capital assets and liabilities.

Profit and Loss Sharing

An arrangement in business and finance where profits and losses are shared among partners or stakeholders, commonly used in Islamic finance.

Forthcoming Contribution

A future addition of value or resources to an entity or project.

Immediate Distribution

The process of allocating funds or assets to beneficiaries or accounts without delay following a specific event.