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:

Formal Coordination

A process where organizational activities are aligned and managed through explicit and official policies, procedures, and structures.

Specific Tasks

Distinct activities or assignments that are designed to achieve a particular objective within a set timeframe.

Situational Contingencies

Refers to external or internal factors that influence the effectiveness of management strategies and decision-making processes.

Organizational Design

The process of structuring an organization in a way that facilitates achieving its goals effectively and efficiently.