Graeme Manages a Candy Store in a High Traffic Shopping

question 40

Multiple Choice

Graeme manages a candy store in a high traffic shopping mall where he has collected the following information:
Weekly demand for small candy boxes = 90 boxes
Cost to place one purchase order with the box supplier = $19.80
Cost to hold one box for one year in inventory = $2.45
ead time = 2 weeks
Weeks in a year = 52 weeks
-The economic order quantity (EOQ) is:

• A) less than 100 boxes.
• B) more than 100 but less than or equal to 150 boxes.
• C) more than 150 but less than or equal to 200 boxes.
• D) more than 200 boxes.

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Definitions:

Efficient Method

An approach or technique that achieves a desired outcome with the least amount of waste, effort, or expense.

Occupational Trends

Patterns or shifts in job growth, decline, or change in different sectors or industries over a period.

Price of Labor

The amount of money that is paid for the work done by employees or laborers.

Demand for Products

Consumers' eagerness and capability to acquire goods and services for certain prices.