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

question 134

Multiple Choice

Use the information below to answer the following question(s) .Office Supply House purchases 4,160 reams of paper per year, ordered in lots of 80 reams per week at $150 per ream.The vendor covers all shipping costs.Office Supply House is not required to inspect the shipment upon entry.Office Supply House earns 20% on its cash investments.The purchase order lead time is two weeks.The following cost data are available:

-The level of inventory which should trigger a new order is called

• A)the customer demand level.
• B)the supply equal demand level.
• C)the stockout level.
• D)the reorder point.
• E)the inventory level.

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Definitions:

Perfectly Inelastic

A situation where the quantity demanded or supplied of a good does not change in response to a change in price.

Relatively Elastic

Describes a situation where the demand for a product is sensitive to changes in price, meaning a small price change can lead to a large change in quantity demanded.

Productivity

A measure of the efficiency of production, often quantified as the ratio of outputs produced to inputs used in the production process.

Pasture Land

Land that is used for the grazing of livestock, allowing animals to feed on the grass and other vegetation present.