Assuming the Optimal Order Quantity of Integrated Circuits for a Manufacturer

question 65

True/False

Assuming the optimal order quantity of integrated circuits for a manufacturer of security timers is 1,000,and the company uses 55 circuits daily,the manufacturer should place an order approximately every 10 days.

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Definitions:

Bank Cash

Bank Cash refers to the liquid assets held by a financial institution that is readily available for transactions and immediate withdrawal.

Cheques

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or to a specified person, out of the drawer's bank account.

Clearing

The process of reconciling purchases and sales of various securities, commodities, or currencies and ensuring the correct transfer of funds.

Collection Float

The time period between when a check is deposited into a bank account and the funds become available.