A Company Annually Consumes 10,000 Units of Part C

question 115

Multiple Choice

A company annually consumes 10,000 units of Part C.The carrying cost of this part is $2 per year and the ordering costs are $100.The company uses an order quantity of 500 units.If the company operates 200 days per year,and the lead time for ordering Part C is 5 days,what is the order point?

• A)250 units
• B)1,000 units
• C)500 units
• D)2,000 units

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Definitions:

Different Definitions

This term alludes to the concept that the meaning or interpretation of concepts can vary based on context, perspective, or usage.

Inevitable

A situation or event that is certain to happen and cannot be avoided or prevented.

Organizational Unit

A specific department, division, or group within an organization, often defined by function or role.

Leader Behavior

Refers to the actions and conduct exhibited by a leader, influencing the group or organization's performance and culture.