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

question 4

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
-The total order and inventory-holding cost is:

• A) less than $1,000.
• B) more than or equal to $1,000 but less than $1,500.
• C) more than or equal to $1,500 but less than $2,000.
• D) more than or equal to $2,000.

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Definitions:

Stimulus

A Stimulus is any event or situation that evokes a response from an organism in a sensory way or through psychological interaction.

Perceptual Equivalence

The phenomenon where different stimuli are perceived as identical due to the perceptual system's interpretation, leading to a consistent perception of an object regardless of changes.

Spatial Equivalence

The concept that two or more entities occupy the same area or space in relation to each other.