Use This Information Below to Calculate the Optimal Order Quantity

question 34

Multiple Choice

Use this information below to calculate the optimal order quantity:
Annual demand for backpacks is 43,000 units
The cost to place an order is $220
The per unit cost of the item is $60.00
The annual holding rate is 37.5%
Choose the closest answer.

• A)920 units
• B)250 units
• C)710 units
• D)830 units

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Definitions:

High-Viscosity

A term that describes a fluid's resistance to flow, with high-viscosity fluids moving more slowly than low-viscosity fluids.

Low-Viscosity

Describes a fluid that easily flows because it has a low resistance to deformation.

Pyroclastic Flow

A fast-moving current of hot gas and volcanic materials that flows down the side of a volcano during an explosive eruption, capable of destroying everything in its path.

Volcanic Breccia

A coarse-grained volcanic rock composed of angular fragments of volcanic material cemented together by finer particles or a mineral matrix.