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

question 32

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:

-How many deliveries will be required at the economic-order quantity level?

• A) 17.7 deliveries
• B) 36.5 deliveries
• C) 41.6 deliveries
• D) 52.3 deliveries
• E) 18.9 deliveries

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Definitions:

Privatisation

The selling of state‐owned enterprises into private ownership.

State-Owned Enterprises

Organizations that are owned and operated by the government and play a role in the delivery of public services or the production of goods.

Private Ownership

Ownership of assets by individuals or corporations rather than by the state or public entities.

Licensing Agreement

Occurs when a firm pays a fee for the rights to make or sell another company’s products.