The Canine Kennel Uses 600 Cases of Dog Food Annually

question 33

Multiple Choice

The Canine Kennel uses 600 cases of dog food annually and orders 40 cases in each shipment.The annual carrying cost per case is $5 and the economic order quantity is 25 cases.Which one of these statements best applies to this situation?

• A) The current annual ordering costs exceed $5 per case.
• B) The firm needs to increase its average inventory level of dog food.
• C) The current annual ordering costs are less than the carrying costs.
• D) The firm needs to reduce the number of orders placed per year.

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Definitions:

Network

A group of interconnected computers, servers, mainframes, network devices, peripherals, or other devices to share data and resources.

Access Point

A networking hardware device that allows wireless devices to connect to a wired network using Wi-Fi or related standards.

Main Router

The primary device in a network that manages traffic between the local network and the internet or other networks.

WEP

Wired Equivalent Privacy, a security protocol that was designed to provide a wireless local area network (WLAN) with a level of security and privacy comparable to what is usually expected of a wired LAN.