Management Wishes to Use an FOQ Lot-Sizing Rule for an Item

question 99

Multiple Choice

Management wishes to use an FOQ lot-sizing rule for an item based on the economic order quantity. If the annual demand is 1,200 units, the holding cost is $10 per unit per year, and the setup cost is $50 per lot, which one of the following fixed-order quantities is most appropriate?

• A) 90 units
• B) 110 units
• C) 130 units
• D) 150 units

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Definitions:

Viewpoints

The perspectives or opinions held by individuals based on their personal experiences and knowledge.

Relationship Conflict

Disagreements and incompatibilities between individuals in a group, often involving personal issues, which can harm emotional bonds.

Personality

The combination of characteristics or qualities that form an individual's distinctive character.

Viewpoint

A particular attitude or way of considering a matter.