A Firm That Makes Electronic Circuits Has Been Ordering a Certain

question 12

Essay

A firm that makes electronic circuits has been ordering a certain raw material 250 ounces at a time. The firm estimates that carrying cost is 30% per year, and that ordering cost is about $20 per order. The current price of the ingredient is $200 per ounce. The assumptions of the basic EOQ model are thought to apply. For what value of annual demand is their action optimal?

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Definitions:

Intercalated Discs

Structures in cardiac muscle cells that facilitate the synchronized contraction of the heart by allowing the rapid passage of ions between cells.

Striations

The repeated ridges found in skeletal and cardiac muscle cells due to the organized arrangement of actin and myosin filaments, giving them a striped appearance.

Desmosomes

A type of cell junction made of protein that connects the cytoskeletons of adjacent cells in a tissue.

Intercalated Discs

Specialized connections between cardiac muscle cells that facilitate the synchronized contraction of the heart.