Suppose That a Company Needs 800 Items During a Year

question 88

Multiple Choice

Suppose that a company needs 800 items during a year and that preparation for each production run costs $60. Suppose further that it costs $8 to produce each item and $0.45 to store an item for one year. Use the inventory cost model to find the number of items in each production run that will minimize the total costs of production and storage. ​

• A)449 items
• B)462 items
• C)491 items
• D)480 items
• E)469 items

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Definitions:

Neuroglia

Non-neuronal cells in the central and peripheral nervous systems that provide support and protection for neurons.

Neurons

Electrically excitable cells in the nervous system that process and transmit information through electrical and chemical signals.

Micrograph

A micrograph is a photograph or digital image taken through a microscope or similar device to show a magnified image of an object.

Gap Junctions

Specialized intercellular connections that facilitate the direct transfer of ions and small molecules between the cytoplasms of adjacent cells.