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

question 160

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:

-Disc Company sells 400 discs per week.Purchase order lead time is 3 weeks and the economic order quantity is 900 units.What is the reorder point?

• A)950 units
• B)1,200 units
• C)3,500 units
• D)4,500 units
• E)5,600 units

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Definitions:

Steam Power

A form of energy generated by heating water to create steam, historically significant for its use in the Industrial Revolution.

Manufacturing Environment

The setting or conditions in which the production of goods is carried out, often involving factories, machinery, and labor.

High-Pressure Steam Engine

An advancement in steam engine technology that allowed engines to operate at higher pressures, significantly improving efficiency and power output, crucial to the Industrial Revolution.

Second Bank

The Second Bank of the United States, established in 1816 and operational until 1836, was a central bank chartered by the U.S. government to manage the country's finances.