A Restaurant Currently Uses 62,500 Boxes of Napkins Each Year

question 19

Multiple Choice

A restaurant currently uses 62,500 boxes of napkins each year at a constant daily rate.If the cost to order napkins is $200.00 per order and the annual carrying cost for one box of napkins is $1.00,then the economic order quantity for napkins is

• A)62,500 boxes.
• B)10,000 boxes.
• C)5,000 boxes.
• D)2,500 boxes.

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Definitions:

Master Production Schedule

A detailed plan that outlines the specific quantities and timing of finished products to be produced, directly influencing procurement, manufacturing operations, and inventory levels.

Bill Of Materials

A comprehensive list detailing the raw materials, components, and assemblies required to create a product.

Materials Required

The list of all items and substances needed to complete a manufacturing process, project, or operation.

Planning Bills

A material grouping created in order to assign an artificial parent to a bill of material; also called “pseudo” bills, kitted material, or kits.