A Firm Has the Following Gross Requirements for Item F

question 58

Multiple Choice

A firm has the following gross requirements for Item F. If ordering costs are $60 per order and carrying costs are $0.50 per period. If L4L ordering is used the planned order releases would be

• A) 40 in period 1 and 0 in period 3.
• B) 80 in period 2 and 60 in period 3.
• C) 60 in period 2 and 80 in period 3.
• D) 0 in period 1 and 40 in period 3.

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Definitions:

Business Processes

Structured activities or tasks that produce a specific service or product for a particular group of customers.

SCM

Supply Chain Management; it involves the management of the flow of goods and services.

ERP

Enterprise Resource Planning is software utilized by companies for the daily management of business operations including accounting, procurement, project management, and manufacturing.

TPS

Transaction Processing System, a type of information system that collects, stores, modifies and retrieves the data transactions of an enterprise.