Overland Has a Part with a Unit Cost of $40

question 52

Multiple Choice

Overland has a part with a unit cost of $40. It costs $52 to place, process and receive an order. The carrying cost of the inventory is approximately 20% of the part's dollar value per year. The firm uses 2,000 of the parts each year. What order quantity minimizes total inventory cost?

• A)93
• B)127
• C)161
• D)205

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Definitions:

Chemical Signals

Molecules released by organisms that influence the behavior or physiology of others, fundamental in processes such as communication and mating.

Mourning

The process of expressing grief and sorrow for someone who has died, often involving rituals and practices specific to a culture or individual.

Lost Incentive

implies a decrease or loss in motivation due to the removal or absence of rewards or goals that once provided motivation.

Klinger's Theory

A psychological framework that suggests motivation and goal pursuit are influenced by changes in personal meaning across different contexts.