For a Certain Item,the Cost-Minimizing Order Quantity Obtained with the Basic

question 57

Multiple Choice

For a certain item,the cost-minimizing order quantity obtained with the basic EOQ model is 200 units,and the total annual inventory (carrying and setup) cost is $600.What is the inventory carrying cost per unit per year for this item?

• A)$1.50
• B)$2.00
• C)$3.00
• D)$150.00
• E)not enough data to determine

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Definitions:

Assessment Mechanism

A system or method used to evaluate, measure, or appraise someone's abilities, needs, or performance.

Recognize

The act of identifying or acknowledging the existence, validity, or legality of something.

Home Visits

A professional practice involving providers visiting the homes of their clients to deliver services or conduct assessments in a familiar and comfortable setting for the client.

Instincts

Innate, typically fixed patterns of behavior in animals and humans in response to certain stimuli.