Use This Information to Answer the Following Questions

question 38

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 maximum inventory held in a given EOQ cycle?

• A)5000 bags
• B)200 bags
• C)50
• D)100 bags
• E)15 bags

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Definitions:

ADR Systems

Alternative Dispute Resolution systems are methods of resolving disputes without traditional litigation, including mediation and arbitration.

Formal Third-party Intervention

The involvement of an external, neutral party in a dispute or negotiation to help resolve differences or facilitate an agreement.

Surrender Control

The act of relinquishing authority, power, or management over something to someone else.

Imposed Intervention

An intervention or action that is forced upon individuals or groups without their consent.