Scenario 9.7 Cranium, Inc., Purchases Term Papers from an Overseas Supplier Under

question 140

Multiple Choice

Scenario 9.7
Cranium, Inc., purchases term papers from an overseas supplier under a continuous review system. The average demand for a popular mode is 300 units a day with a standard deviation of 30 units a day. It costs $60 to process each order and there is a five-day lead-time. The holding cost for a paper is $0.25 per year and the company policy is to maintain a 98% service level. Cranium operates 200 days per year.
-Use the information in Scenario 9.7. What is the EOQ for these papers?

• A) less than or equal to 3,000 units
• B) greater than 3,000 units but less than or equal to 4,000 units
• C) greater than 4,000 units but less than or equal to 5,000 units
• D) greater than 5,000 units

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Definitions:

Treatment Plans

Structured outlines developed by healthcare professionals detailing the strategies and interventions for addressing an individual's health or behavioral issues.

Problem-oriented Recording

A method of documentation focusing on the identification and solving of client problems within professional practices such as social work.

Agency Records

are documents, files, and data held by a governmental or private organization, detailing its activities, transactions, and decisions.

Recording Formats

Various methods or systems used to capture and store audio, video, or data for later retrieval and use.