Use This Information to Answer the Following Questions

question 13

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 minimum inventory held in a given EOQ cycle?

• A)0 bags
• B)2500 bags
• C)50 bags
• D)25 bags
• E)100 bags

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Definitions:

Sebaceous Gland

Glands located under the skin's surface that produce sebum, an oily substance that helps to keep the skin moisturized.

Hypoallergenic Tape

A type of medical adhesive tape that is designed to minimize allergic reactions and skin irritation.

Adhesive Material

Substances used to bind objects together, typically by surface attachment.

Laceration

A cut or tear in the skin or flesh, often caused by an accident with a sharp object, which can vary in depth and severity.