Table 1
Peterson Enterprises Uses a Fixed Order Quantity Inventory $= 50,000$

question 58

Multiple Choice

Table 1
Peterson Enterprises uses a fixed order quantity inventory control system. The firm operates 50 weeks per year and has the following characteristics for an item:
Demand $= 50,000$ units/year
Ordering cost $= \$ 35 /$ order
Inventory-carrying cost as a percent of item value $= 25 \%$
Item (Unit) value $= \$ 8$
Lead time $= 3$ weeks
Standard deviation in weekly demand $= 125$ units
-Using the information in Table 1, calculate the economic order quantity (EOQ) for this item?

• A) Less than or equal to 1200 units
• B) Greater than 1200 but less than or equal to 1400 units
• C) Greater than 1400 but less than or equal to 1600 units
• D) Greater than 1600 units

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Definitions:

Powerlessness

A feeling of having no control over one's situation or outcomes, often discussed in psychological and sociological contexts.

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A slowing down of thought and a reduction of physical movements in an individual.

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A mental disorder characterized by a persistent and pervasive low mood that is accompanied by low self-esteem and by a loss of interest or pleasure in normally enjoyable activities.

Personal Hygiene

The practice of maintaining cleanliness and grooming of the external body to preserve health and well-being.