Exhibit Cartwright Computing Cartwright Computing Expects to Order 126,000 Memory Chips for Inventory

question 1

Multiple Choice

Exhibit Cartwright Computing
Cartwright Computing expects to order 126,000 memory chips for inventory during the coming year, and it will use this inventory at a constant rate.Fixed ordering costs are $200 per order; the purchase price per chip is $25; and the firm's inventory carrying costs is equal to 20 percent of the purchase price.(Assume a 360-day year.)
-Refer to Exhibit Cartwright Computing.Assume that Cartwright holds a safety stock equal to a 30-day supply of chips.What is the maximum amount of inventory that will have on hand at any time, that is, what will be the inventory level right after a delivery is made?

• A) 9,216
• B) 3,175
• C) 6,243
• D) 13,675
• E) 8,124

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Definitions:

Recognize Familiar Patterns

The ability to identify recurring shapes, arrangements, or sequences that one has encountered before.

Superior Memory

Exceptional ability to remember information compared to the average person's memory capability.

Careful Practice

Engaging in an activity with intentional focus and attention to detail to improve competency and minimize errors.

Productivity

The measure of the efficiency of production, often evaluated as the output per unit of input in a given time period.