If Annual Demand Is 12,000 Units, the Ordering Cost Is

question 90

Multiple Choice

If annual demand is 12,000 units, the ordering cost is $6 per order, and the holding cost is $2.50 per unit per year, which of the following is the optimal order quantity using the fixed-order-quantity model?

• A) 576
• B) 240
• C) 120.4
• D) 60.56
• E) 56.03

---

Definitions:

Eyestrain

Discomfort or strain on the eyes, typically resulting from prolonged computer use, reading without proper light, or any activity that requires intense focus.

Cones

Photoreceptor cells in the retina that enable color vision and visual clarity in bright light.

Fovea Centralis

A small depression in the retina of the eye where visual acuity is highest, due to the concentration of cones, specialized for daylight vision, fine detail, and color.

Retina

The light-sensitive layer of tissue at the back of the inner eye that converts light into electrical signals sent to the brain, allowing for vision.