The Manager of the Quick Stop Corner Convenience Store (Which

question 96

Multiple Choice

The manager of the Quick Stop Corner convenience store (which is open 360 days per year) sells four cases of Stein soda each day (1440 cases per year) . Order costs are $8.00 per order. The lead time for an order is three days. Annual holding costs are equal to $57.60 per case.
-If the daily demand is 40 and the level time in days is 4, what is the reorder point?

• A) 120
• B) 140
• C) 160
• D) 180

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Definitions:

Compounded Monthly

Interest on a loan or investment calculated monthly and added to the principal sum for the calculation of subsequent interest.

Compounded Annually

Interest calculation and accumulation once per year on the principal amount of an investment or loan.

Compounded Quarterly

Interest calculated four times a year, applying on the original principal and including interest accumulated in previous periods.

Quarterly Payments

Quarterly payments are those made four times a year, often used in the context of financial arrangements like loans, leases, and investment dividends.