Answer the Following Questions Using the Information Below:
Computer Supplies $\quad\quad\$ 94.50$

question 31

Multiple Choice

Answer the following questions using the information below:
Computer Supplies is a distributor of DVDs.Music 4U is a local retail outlet which sells blank and recorded DVDs.Music 4U purchases DVDs from Computer Supplies at $0.25 per DVD;DVDs are shipped in packages of 100.Computer Supplies pays all incoming freight,and Music 4U does not inspect the DVDs due to Computer Supplies' reputation for high quality.Annual demand is 416 000 DVDs at a rate of 8000 DVDs per week.Music 4U earns 15% on its cash investments.The purchase-order lead time is one week.The following cost data are available:
Relevant ordering costs per purchase order $\quad\quad\$ 94.50$
Carrying costs per package per year:
Relevant insurance, materials handling,
breakage, etc, per year $\quad\$ 3.50$
-What is the economic order quantity (EOQ) ?

• A)200 packages
• B)874 packages
• C)652 packages
• D)330 packages

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Definitions:

Pepsi

A global brand of carbonated soft drinks produced and manufactured by PepsiCo.

Product Label

A piece of information on a product's package that provides details about the product, including ingredients, manufacturer, usage instructions, and safety warnings.

Business Perspective

A viewpoint or attitude towards the operations, strategies, and goals of a business or organization.

Secondary Package

The wrapper or exterior carton that contains the primary package and provides the UPC label used by retail scanners; can contain additional product information that may not be available on the primary package.