Olga Company Has an Economic Order Quantity for Item B

question 66

Multiple Choice

Olga Company has an economic order quantity for item B of 100 units. The annual demand for the product is 1,400 units, and the unit carrying cost per year is $7. What is the cost of placing an order?

• A)$25
• B)$8
• C)$200
• D)$2

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Definitions:

High-intensity Discharge (HID)

A type of lighting technology that produces light by passing an electrical charge through a gas, often used in automotive headlights.

Fluorescent

Relating to the emission of light by a substance that has absorbed light or other electromagnetic radiation of a different wavelength.

Halogen Insert Bulb

A type of light bulb that uses halogen gas to increase light output and efficiency compared to traditional incandescent bulbs.

Tire Pressure Monitoring Systems (TPMSs)

Electronic systems designed to monitor the air pressure inside the pneumatic tires on various types of vehicles, alerting the driver when tire pressure is low.