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:

Medical Decisions

Choices made related to health care, including treatments, surgeries, and end-of-life care, often involving patients, families, and healthcare professionals.

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An individual who is in the final phase of life, often characterized by terminal illness or old age, facing the process of death.

Mourning Process

The psychological and emotional responses and adjustments that individuals go through following the loss of a loved one.

Private Expression

The act of conveying thoughts, feelings, or ideas in a personal or secluded manner, not intended for public view or acknowledgment.