A Company That Embroiders T-Shirts, Uses 15,000 Plain T-Shirts Annually

question 103

Multiple Choice

A company that embroiders t-shirts, uses 15,000 plain t-shirts annually. The optimal order quantity is 500 shirts. The company embroiders approximately 150 shirts daily. Using the ____________ calculations, the company knows it should place an order approximately every 3 days.

• A) materials requirement planning
• B) just-in-time inventory management
• C) break-even
• D) economic order quantity
• E) independent demand
• Calculations, the company knows it should

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Definitions:

Noninterest-Bearing Note

A promissory note that does not accrue interest over its lifetime, meaning the borrower repays only the principal amount.

Current Interest Rates

Current interest rates are the rates at which interest is paid by borrowers for the use of money that they borrow from lenders.

Notes Receivable Dishonored

A note that was not paid by the maker at its due date, considered a defaulted payment.

Protest Fee

A fee charged for formally declaring a party's disagreement or refusal to accept a financial obligation or document, often relating to banking instruments like checks.