Miniature Company Sells Stuffed Tigers What Is the Economic Order Quantity Using the Estimated Amounts

question 120

Multiple Choice

Miniature Company sells stuffed tigers.Birtal Inc.manufactures many different stuffed animals.Miniature orders 20,800 tigers per year,400 per week,at $15 per tiger.The manufacturer covers all shipping costs.Miniature earns 15% on its cash investments.The purchase-order lead time is 3 weeks.Miniature sells 310 tigers per week.The following data are available (based on management's estimates) : $\begin{array}{cr}\text { Estimated ordering costs per purchase order }&\$22\\\text { Estimated insurance, materials handling, breakage, }\\\text { and so on, per year } & \$ 7 \\\text { Actual ordering costs per order } & \$ 25\end{array}$ What is the economic order quantity using the estimated amounts?

• A) 637.7 stuffed tigers
• B) 314.5 stuffed tigers
• C) 191 stuffed tigers
• D) 325 stuffed tigers

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Definitions:

Avoidant Personality Disorder

A psychiatric condition characterized by a long-standing pattern of extreme shyness, feelings of inadequacy, and sensitivity to rejection.

Social Contact

Interaction between individuals that can provide emotional support, companionship, and a sense of belonging.

Rejection

The act of being dismissed or deemed unworthy of acceptance, which can occur in social, professional, or personal contexts, leading to emotional distress.

Schizotypal Personality Disorder

A mental disorder characterized by severe social anxiety, thought disorder, paranoid ideation, derealization, transient psychosis, and often unconventional beliefs.