Scenario C.1 Jerry Allison Is in Charge of Production for a Small

question 33

Multiple Choice

Scenario C.1
Jerry Allison is in charge of production for a small producer of plumbing supplies. The cricket model has an estimated annual demand of 12,000 units and can be produced at a production rate of 90 units per day. The company produces (and sells) the cricket 300 days per year. Setup cost to produce this model averages $22 and the item has a holding cost of $3 per unit per year.
-Use the information in Scenario C.1. What is the economic production lot size (ELS) ?

• A) fewer than or equal to 400 units
• B) greater than 400 units but fewer than or equal to 480 units
• C) greater than 480 units but fewer than or equal to 500 units
• D) greater than 500 units

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Definitions:

Poor Attendance

The frequent absence from or lack of participation in expected events, such as school or work.

Absenteeism

The practice of regularly staying away from work or school without good reason.

Procrastination

The action of delaying or postponing something.

Combatting

Engaging in action or struggle against a challenge or adversary.