Margaret Company Has an Economic Order Quantity for Item B

question 48

Multiple Choice

Margaret 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.The company operates 200 days a year, the lead time for the item is ten days, and the safety stock is 100 units. What is the reorder point?

• A) 70 units
• B) 170 units
• C) 1000 units
• D) 100 units

---

Definitions:

Vascular Cambium

A layer of meristematic tissue in plants that produces vascular tissues, contributing to the thickness growth of stems and roots.

Secondary Xylem

The part of the xylem that is formed after the plant's initial growth, contributing to the thickening of the plant stem.

Primary Phloem

The part of the plant's vascular system that conducts sugars and other metabolic products downward from the leaves.

Cork Cambium

Cork cambium is a layer of meristematic tissue in plants that produces cork cells to protect and waterproof the plant.