A Computer Company Has Annual Demand of 20,000

question 102

Multiple Choice

A computer company has annual demand of 20,000. They want to determine EOQ for circuit boards which have an annual holding cost (H) of $10/unit, and an ordering cost (S) of $75. The purchasing lead time is 5 days. What is the TC and reorder point ( R) ?

• A) 300 units, $3,000
• B) 400 units, $5,477
• C) 200 units, $2,000
• D) 350 units, $5, 277
• E) 400 units, $5,350

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Definitions:

Norman Rockwell

An American painter and illustrator known for his depictions of American culture, producing covers for The Saturday Evening Post magazine for nearly five decades.

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A political and economic ideology that advocates for free market policies, limited government intervention, and fiscal restraint to encourage economic growth.

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A global military conflict that lasted from 1939 to 1945, involving most of the world's nations including all of the great powers, eventually forming two opposing military alliances: the Allies and the Axis.