Use the Table Below to Answer the Following Question(s) -In EOQ Model, ________ Is the Estimate on How Long

question 36

Multiple Choice

Use the table below to answer the following question(s) .
Shirley Templeton is a real estate agent for Paralol Realty.Shirley is given the responsibility to manage potential customers for 5 of the Realty's bungalows.These 5 bungalows are situated in close proximity.In order to make traveling easire, Shirley decides to move to a location closer to the 5 bungalows.The table below gives the location (X and Y coordinates) of the 5 bungalows along with the number of trips she would have to make to each bungalow.Create a nonlinear model based on the data given in the table below noting that the objective is to reduce the weighted distance between Shirley's accommodation and the 5 bungalows.
$\begin{array}{l}\text { Bungalow Location }\\\begin{array}{|l|l|l|l}\hline & & & \\\hline \text { Data } & \text { X-coordinate } & Y \text {-coordinate } & \text { Trips/Month } \\\hline \text { Location } & 0 & 0 & 6 \\\hline \text { Bungalow 1 } & 25 & 100 & 30 \\\hline \text { Bungalow 2 } & 20 & 75 & 15 \\\hline \text { Bungalow 3 } & 90 & 80 & 28 \\\hline \text { Bungalow 4 } & 60 & 100 & 10\end{array}\end{array}$

-In EOQ model, ________ is the estimate on how long it takes an order to be received after it is placed.

• A)lead time
• B)safety stock
• C)time limit
• D)cycle time

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Definitions:

Manufacturing Overhead

The indirect factory-related costs that are incurred when a product is manufactured, including costs such as maintenance, utilities, and quality control.

Standard Costing System

An accounting method that uses standard costs for product cost planning and control, involving setting predetermined costs for manufacturing activities.

Variable Overhead Efficiency Variance

Measures the difference between the actual hours taken to produce an item and the standard hours expected, multiplied by the variable overhead rate per hour.

Direct Labor-Hours

The total hours of labor directly involved in manufacturing a product or providing a service, which are directly attributable to the cost of creating that product or service.