Calculate the Economic Ordering Quantity for Nashville Records Inc

question 36

Multiple Choice

Calculate the economic ordering quantity for Nashville Records Inc. ,given the following information:
Sales= 15,000 units per year
Sales price= $10 per unit
Purchase price= $5
Carrying cost= 0.25 times inventory value
Fixed cost per order= $1,000

• A) 3,464 units
• B) 4,899 units
• C) 346 units
• D) 490 units
• E) 1,549 units

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Definitions:

Just-In-Time Manufacturing

A production strategy that strives to improve business efficiency by reducing in-process inventory and associated carrying costs, delivering materials just as they are needed.

Supply Chains

The entire system of producing and delivering a product or service, from the raw materials to the final consumer.

Global Procurement

The process of sourcing goods and services from the global market to exploit global efficiencies, such as lower cost or enhanced quality and innovation.

Big Data

Describes extremely large data sets that users can analyze to uncover important and helpful statistical patterns, trends, and associations.