Use the Information Below to Answer the Following Question(s)

question 131

Multiple Choice

Use the information below to answer the following question(s) .Movie Time is a distributor of DVDs.Video Mart is a local retail outlet which sells blank and recorded DVDs.Video Mart purchases DVDs from Movie Time at $5.00 each; the units are shipped in packages of 25.Movie Time pays all incoming freight, and Video Mart does not inspect the DVDs due to Movie Time's reputation for high quality.Annual demand is 104,000 DVDs at a rate of 2,000 units per week.Video Mart earns 15% on its cash investments.The purchase order lead time is one week.The following cost data are available:

-What is the economic order quantity?

• A)874 packages
• B)652 packages
• C)200 packages
• D)198 packages
• E)188 packages

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Definitions:

Buyer-supplier Satisfaction Matrix

A tool used to evaluate and improve the relationship between buyers and suppliers by mapping out satisfaction levels of both parties.

Strategic Supply Management

The process of planning, implementing, and controlling the operations of the supply chain in a strategic manner to achieve competitive advantage.

Competitive Edge

An advantage that allows an organization to outperform its competitors, achieved through superior products, processes, or strategies.

Supplier Relationships

The interaction and cooperation between businesses and their suppliers, aimed at achieving mutual benefits and ensuring a stable supply chain.