Use the Information Below to Answer the Following Question(s)

question 46

Multiple Choice

Use the information below to answer the following question(s) :
The materials manager for a billiard ball maker must periodically place orders for resin,one of the raw materials used in producing billiard balls.She knows that manufacturing uses resin at a rate of 50 kilograms each day,and that it costs $.04 per day to carry a kilogram of resin in inventory.She also knows that the order costs for resin are $100 per order,and that the lead time for delivery is four (4) days.Assume 365 days in a year.
-What is the economic order quantity (EOQ) for resin?

• A)50 kilograms
• B)100 kilograms
• C)200 kilograms
• D)500 kilograms

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Definitions:

Step-By-Step

A methodical approach to problem-solving or task completion that involves breaking down the process into clearly defined and sequential stages.

Problem Avoiders

People who ignore information indicating a performance opportunity or threat.

Problem Solvers

People who try to solve problems when they occur.

Problem Seekers

People who constantly process information looking for problems to solve, even before they occur.