If Annual Demand Is 12,000 Units, the Ordering Cost Is

question 90

Multiple Choice

If annual demand is 12,000 units, the ordering cost is $6 per order, and the holding cost is $2.50 per unit per year, which of the following is the optimal order quantity using the fixed-order-quantity model?

• A) 576
• B) 240
• C) 120.4
• D) 60.56
• E) 56.03

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Definitions:

Humoral

Pertains to body fluids, especially in regard to immune responses involving antibodies in the bloodstream.

Blood Glucose

The concentration of glucose present in the blood, essential for providing energy to body cells and maintaining body functions.

Fatty Acid Derivative

A compound derived from fatty acids, often involved in biological processes or used as industrial chemicals.

Polypeptides

Chains of amino acids linked together by peptide bonds, forming the basic structure of proteins.