A Product Has a Demand of 4000 Units Per Year

question 95

Multiple Choice

A product has a demand of 4000 units per year. Ordering cost is $20, and holding cost is $4 per unit per year. The EOQ model is appropriate. The cost-minimizing solution for this product will cost ________ per year in total annual inventory (holding and setup) costs.

• A) $400
• B) $800
• C) $1200
• D) Zero; this is a class C item.
• E) Cannot be determined because the unit price is not known.

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Definitions:

Syntactic Bootstrapping

A language acquisition strategy where children use the structure of sentences to infer the meaning of new words or phrases.

Referential Intent

The intention behind using words or language to refer to specific objects, actions, or events in the environment.

Fast Mapping

A process in language acquisition where children rapidly learn the meaning of a word after just a brief encounter, contributing to vocabulary growth.