Exhibit 3.5 The Following Questions Are Based on This Problem and Accompanying

question 39

Multiple Choice

Exhibit 3.5
The following questions are based on this problem and accompanying Excel windows.
A company is planning production for the next 4 quarters. They want to minimize the cost of production. The production cost is stable but demand and production capacity vary from quarter to quarter. The maximum amount of inventory which can be held is 12,000 units and management wants to keep at least 3,000 units on hand. Quarterly inventory holding cost is 3% of the cost of production. The company estimates the number of units carried in inventory each month by averaging the beginning and ending inventory for each month. There are currently 5,000 units in inventory. The company wants to produce at no less than one half of its maximum capacity in any quarter.
-Refer to Exhibit 3.5. What formula should be entered in cell C6 in the accompanying Excel spreadsheet to compute ending inventory?

• A) =C3-C4+C5
• B) =C3+C4-C5
• C) =C3-(C4-C5)
• D) =C5-C4-C3

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Definitions:

Negotiation Record

A detailed account of negotiation proceedings, including the proposals, discussions, and agreements made between parties.

Public Sector

The portion of the economy composed of government services and enterprises, including employees who work for government entities.

Essential Services

Services considered necessary for the safety, health, and welfare of the public, which may be exempt from labor strikes.

Economic Markets

Systems where parties engage in exchange of goods, services, and information, often regulated by supply and demand.