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

question 6

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 15 orders in the year.
• B)The average inventory is 1,000 units.
• C)The holding cost per unit is $2.50.
• D)The total annual holding costs are $25,000 (= $2.50 * 10000).

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Definitions:

Breaching Contracts

The act of failing to fulfill the terms agreed upon in a contract by one or more parties.

Sale or Lease

Transactions involving the transfer of ownership or the right to use property or goods for a period of time in exchange for payment.

Appropriate Remedy

A legal solution provided by a court to enforce a right, compensate for harm, or ensure fairness in the resolution of a dispute.

Unconscionability

A condition in contract law where an agreement is so unfairly one-sided that it is considered oppressive or shockingly unjust.