Use the Information Below to Answer the Following Question(s)

question 37

Multiple Choice

Use the information below to answer the following question(s) .Office Supply House purchases 4,160 reams of paper per year, ordered in lots of 80 reams per week at $150 per ream.The vendor covers all shipping costs.Office Supply House is not required to inspect the shipment upon entry.Office Supply House earns 20% on its cash investments.The purchase order lead time is two weeks.The following cost data are available:

-What is the economic order quantity?

• A)324 reams
• B)235 reams
• C)114 reams
• D)100 reams
• E)110 reams

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Definitions:

Supply Chain Focus

The central attention or concentration on the management of the flow of goods and services, including all processes that transform raw materials into final products.

Profit Center

A distinct segment of a business that is responsible for generating its own revenue and profit, enabling better tracking of financial performance.

Value-Adding Activity

Any action or process that increases the worth of a product or service to customers, making it more desirable or enhancing its quality.