Carter Company Orders 250 Units at a Time, and Places

question 104

Multiple Choice

Carter Company orders 250 units at a time, and places 15 orders per year. Total ordering cost is $1,600 and total carrying cost is $1,250. Which of the following statements is true?

• A) The economic order quantity (EOQ) is 250.
• B) The economic order quantity (EOQ) is more than 250.
• C) The economic order quantity (EOQ) is less than 250.
• D) Total inventory-related cost is lower than it would be at the economic order quantity (EOQ).
• E) None of these.

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Definitions:

Consumer Trust

The confidence and belief that consumers have in the reliability and integrity of a brand or product.

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Individuals within an organization who are responsible for overseeing operations and making decisions that affect the company's direction and goals.