If Annual Demand Is 35,000 Units, the Ordering Cost Is

question 29

Multiple Choice

If annual demand is 35,000 units, the ordering cost is $50 per order, and the holding cost is $0.65 per unit per year, which of the following is the optimal order quantity using the fixed-order-quantity model?

• A) 5,060
• B) 2,320
• C) 2,133
• D) 2,004
• E) 1,866

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Definitions:

Three-Phase Connection

A method of electrical connection that uses three alternating currents of the same frequency and amplitude but with phases offset by one third of a cycle.

Windings

Coils of wire around a core in electrical devices, used to create magnetic fields or induce currents.

Wye

A configuration for connecting three-phase power where the phases are connected at a common point, forming a Y shape.

Delta

In electrical engineering, refers to a method of connecting three-phase circuits where the ends of each coil are connected in a triangle or delta shape, allowing for the use of each phase.