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:

Administrative Head

The Administrative Head is the lead official in charge of managing and overseeing the operations of an organization or department.

Substantive Rules

Regulations that establish rights and duties, as opposed to procedural rules which govern how those rights and duties are enforced.

Policy Expressions

Statements or declarations that outline the plans, rules, or guidelines adopted by an organization or government to direct actions and decisions.

Administrative Law Judge

A specialized judge who conducts hearings and makes decisions on disputes involving administrative agencies of the government.