Answer the Following Questions Using the Information Below:
Vision Company

question 77

Multiple Choice

Answer the following questions using the information below:
Vision Company sells optical equipment. Blitz Company manufactures special glass lenses. Vision orders 11,400 lenses per year, 200 per week, at $35 per lens. Blitz covers all shipping costs. Vision earns 25% on its cash investments. The purchase-order lead time is 2.5 weeks. Vision sells 225 lenses per week. The following data are available:
$\begin{array} { l } \text {Relevant ordering costs per purchase order }&\$41.25 \\ \text {Relevant insurance, materials handling, breakage, }& \\ \text { and so on, per year}&4.50 \\\end{array}$

-What is the reorder point?

• A) 500 lenses
• B) 562.5 lenses
• C) 1050 lenses
• D) 1062.5 lenses

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Definitions:

True Value

The actual value of a parameter or variable that is typically estimated based on sample data.

Coefficient of Determination

This indicates the proportion of the variation in the dependent variable that can be explained by the independent variable(s) in a regression model, quantifying the predictive power of the model.

Units

Basic quantities or measurements used to express and compare physical quantities.

Sample Size

Refers to the number of observations or data points collected in a study or used in statistical analysis.