Carter Company Orders 250 Units at a Time, and Places

question 60

Multiple Choice

Carter Company orders 250 units at a time, and places 15 orders per year. Total ordering cost is $1,100 and total carrying cost is $1,100. 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:

Plastic Bag

A flexible, thin container made of plastic, often used for carrying or storing items, and a significant contributor to plastic pollution if not disposed of properly.

Sterile Gown

Protective attire worn by medical staff during procedures to maintain a sterile environment and prevent contamination.

Perioperative Area

The region or set of rooms in a healthcare facility used for patients undergoing surgical procedures, including pre-operatory, operatory, and post-operatory spaces.

Surgical Technologist

A healthcare professional who assists in surgical operations, ensuring that the procedure goes smoothly by preparing and organizing equipment and assisting surgeons.