If the Order Quantity Per Order Is 2,000 Units,annual Demand

question 64

Multiple Choice

If the order quantity per order is 2,000 units,annual demand is 10,000,and cost per order is $50,then which of the following statements is true?

• A)There are 50 orders in the year.
• B)The total annual ordering cost is $250.
• C)The holding cost per unit is $2.50.
• D)The total annual holding costs are $25,000 (= $2.50 * 10,000).

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Definitions:

Habit

A regular practice or routine that is hard to give up.

Psychological Factors

Elements of human behavior and processes that affect an individual's decisions and actions, particularly in the context of purchase behavior.

Buying Decisions

The process or act of choosing to purchase a product or service based on various factors like need, desire, and affordability.

Social Factors

Elements that influence individuals' behavior and attitudes, including cultural, societal norms, and community influences.