Beryl Company Sells 900 Flash Drives Per Week

question 82

Multiple Choice

Beryl Company sells 900 flash drives per week. Purchase-order lead time is 2 weeks and the economic-order quantity is 1625 units. What is the reorder point?

• A) 3250 units
• B) 1450 units
• C) 1800 units
• D) 1625 units

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Definitions:

Relatively Elastic

Describes a situation in which the quantity demanded or supplied responds significantly to changes in price.

Oligopoly

A market structure characterized by a small number of firms dominating the market, leading to limited competition and often strategic behavior amongst competitors.

Interdependence

A situation in which the outcome or payoff for each participant depends on the actions of others, commonly found in competitive and cooperative environments.

Market Structure

The organizational and other characteristics of a market that significantly affect the nature of competition and pricing within the market.