Using the Fixed-Order-Quantity Model, Which of the Following Is the Total

question 94

Multiple Choice

Using the fixed-order-quantity model, which of the following is the total ordering cost of inventory given an annual demand of 36,000 units, a cost per order of $80, and a holding cost per unit per year of $4?

• A) $849
• B) $1,200
• C) $1,889
• D) $2,267
• E) $2,400

Identify personal and organizational sources of stress for professionals.

Understand the importance of self-assessment and proactive measures in reducing professional impairment.

Recognize the role of personal attitudes and agency environment in burnout risk.

Demonstrate knowledge of effective individual strategies for preventing burnout.

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Definitions:

Optimal Cash Balance

The ideal amount of cash a company should hold to minimize both holding costs and transaction costs.

Float Cost Impact

The effect of delayed checks or securities settlements on the use of funds, which can affect a company's cash flow.

Target Cash Balance

The optimal level of cash a company aims to maintain to manage daily operations and accommodate unexpected expenses or investment opportunities.

Cash Flow Uncertainty

The unpredictability regarding the amounts and timing of cash flows into or out of a business.