The High-Rise Building Company Uses 400,000 Tons of Stone Per

question 66

Multiple Choice

The High-Rise Building Company uses 400,000 tons of stone per year. The carrying costs are $100/ton. The cost per order is $500. Calculate the economic order quantity per order.

• A)1,000 tons
• B)2,000 tons
• C)3,000 tons
• D)4,000 tons

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Definitions:

Offer

A proposal presented by one party to another as a basis for negotiations to form a contract, requiring clear terms that can be accepted.

24-Hour Schedule

A rotation or work schedule that covers all hours of the day across a team or installation, ensuring operations or service availability around the clock.

Output Contract

An agreement between a seller and a buyer where the seller agrees to sell all the production to the buyer, who in turn agrees to purchase the entire output.

Operating Schedule

A plan or timetable outlining the hours or periods a facility, service, or piece of equipment is in operation.