Assume That the Order Quantity Is 1000 Units,and the Holding

question 3

Multiple Choice

Assume that the order quantity is 1000 units,and the holding costs are $5 a unit per year.In this case,______.

• A)the average inventory level is 500 units,and the total annual holding costs are $2,500
• B)the average inventory level is 1,000 units,and the total annual holding costs are $5,000
• C)the average inventory level is 0 units,and the total annual holding costs are $5
• D)the average inventory level is 500 units,and the total annual holding costs are $5,000

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Definitions:

Workforce

The group of people who are engaged in or available for work, either in a country or a firm.

Economic Efficiency

A condition in which all resources are allocated in a way that maximizes the total benefit to society or minimizes waste.

Voice Mechanism

A means by which individuals or groups can express opinions, feedback, or concerns, often in the context of organizational decision-making or governance.

Job Restrictions

Regulations or rules that limit who can perform certain jobs or work in certain professions, often requiring specific qualifications or licenses.