Albemarle Sprinkler Company Purchases the Sprinkler Heads for Its Line

question 28

Multiple Choice

Albemarle Sprinkler Company purchases the sprinkler heads for its line of lawn sprinklers from a supplier. Albemarle's production manager wonders how many sprinkler heads she should order for the next six months. The company's marketing manager forecasts sales to be 29,400 units for the upcoming six months. The purchasing manager has negotiated a price of $6.47 per head. The production manager estimates that it costs $17.25 to place an order with the supplier and $2.97 to store a sprinkler head in inventory for six months.
-What is Albemarle's total inventory cost using the EOQ point?

• A)$191,954
• B)$192,388
• C)$192,166
• D)$192,087

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Definitions:

Statistical Significance

A statistical measure that helps to determine whether the observed findings are unlikely to have occurred by chance.

T Value

A value calculated from sample data used to assess whether a null hypothesis should be rejected in the context of a t-test.

Population's Standard Deviation

A measure of the dispersion or spread of scores within a given population, indicating the average distance from the mean.

Observed Z Value

The value resulting from a Z-test statistic used in hypothesis testing, representing how many standard deviations an observation is from the mean.