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:

Itching and Burning Sensations

Uncomfortable feelings on the skin that urge scratching and may feel hot, often indicative of an underlying medical condition or irritation.

Closed-angle Glaucoma

A type of glaucoma where the angle between the iris and cornea suddenly becomes blocked, leading to rapid increase in intraocular pressure.

Open-angle Glaucoma

A common form of glaucoma characterized by the gradual loss of peripheral vision.

Corneal Abrasion

A scratch or injury to the cornea, the clear protective covering over the front part of the eye, often causing pain, redness, and sensitivity to light.