Table 1
Jackson Enterprises Uses a Fixed Order Quantity Inventory $=20,000$

question 61

Multiple Choice

Table 1
Jackson 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 $=20,000$ units/year
Ordering cost $=\$ 45 /$ order
Inventory-carrying cost as a percent of item value $=25 \%$
Item (Unit) value $=\$ 20$
Lead time $=5$ 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 500 units
• B) Greater than 500 units but less than or equal to 1,000 units
• C) Greater than 1,000 units but less than or equal to 1,500 units
• D) Greater than 1,500 units

---

Definitions:

Perspective Taking

The act of viewing situations or understanding concepts from an alternative point of view.

Empathy

The ability to understand and share the feelings of another from their perspective; often involves emotional and cognitive components.

Social Learning

A theory that proposes people can learn new behaviors through observation and imitation of others.

Latane and Darley

Scientists who introduced the concept of diffusion of responsibility, explaining why people are less likely to take action or feel a sense of urgency in the presence of a group.