Burgoon Uses an Economic Order Quantity Model and Has Determined

question 14

Multiple Choice

Burgoon uses an economic order quantity model and has determined an optimal order size of 500 units.Annual demand is 10,000 units,ordering costs are $50 per order,and holding costs are $4 per unit.The company's annual ordering and holding costs total:

• A)$2,000.
• B)$3,000.
• C)$21,000.
• D)$41,000.
• E)some other amount.
• Cartwright Graphics uses a special purpose paper on 80% of its jobs.The paper is purchased in 100-sheet packages at a cost of $100 per packagE.Management estimates that the cost of placing and receiving a typical order is $15,and the annual cost of carrying a package in inventory is $1.50.Cartwright uses 2,600 packages each year.Production is constant,and the lead time to receive an order is 1 week.

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Definitions:

Temporary

Pertaining to a limited period of time, not permanent.

Volatile

Referring to substances that easily evaporate at normal temperatures or, in financial markets, to investments subject to rapid and unpredictable changes in value.

Supercomputers

High-performance computing systems that are among the fastest and most powerful at any given time, used for complex simulations, data analysis, and scientific research.

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High-performance computing systems capable of processing and analyzing vast amounts of data at high speeds.