Use This Information to Answer the Following Questions

question 17

Multiple Choice

Use this information to answer the following questions.
A bakery buys sugar in 15-pound bags.The bakery uses 5000 bags of sugar each year.Carrying costs are $20 per bag per year.Ordering costs are estimated at $5 per order.Assume that the bakery is open 250 days a year and its daily demand is estimated at 20 bags.It takes 5 days for each order of sugar to be filled.
-Refer to the information above.What is the optimal EOQ?

• A)200 bags
• B)5000 bags
• C)2500 bags
• D)100 bags
• E)50 bags

---

Definitions:

PLC

Programmable Logic Controller, a digital computer used for automation of electromechanical processes.

Full-duplex Transmission

A mode of communication that allows data to be transmitted simultaneously in both directions on a signal carrier, enabling two-way communication at the same time.

Both Directions

A term typically used in communications and data transfer indicating that transmission can occur to and from two endpoints or devices.