If Annual Demand Is 50,000 Units, the Ordering Cost Is

question 93

Multiple Choice

If annual demand is 50,000 units, the ordering cost is $25 per order, and the holding cost is $5 per unit per year, which of the following is the optimal order quantity using the fixed-order-quantity model?

• A) 909
• B) 707
• C) 634
• D) 500
• E) 141

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Definitions:

Active Enzyme

An enzyme in a form in which it can catalyze its specific biochemical reaction.

Protein

Complex molecules made up of amino acids that are essential for various bodily functions, including tissue repair, nutrient transport, and enzyme activity.

Cytoplasmic Receptor

A type of receptor found within the cytoplasm of a cell that binds to specific ligands, leading to changes in cell function.

Chemical Signal

Molecule that binds to a macromolecule, such as receptors or enzymes, and alters their function; also called ligand.