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

question 30

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 maximum inventory if Jerry chooses to produce at the economic production lot size (ELS) ?

• A) fewer than or equal to 300 units
• B) greater than 300 units but fewer than or equal to 320 units
• C) greater than 320 units but fewer than or equal to 340 units
• D) greater than 340 units

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Definitions:

Fourteenth Amendment

An amendment to the U.S. Constitution that grants citizenship to all persons born or naturalized in the United States and provides equal protection under the law.

Insider Trading Violation

Illegal trading of a public company's stock or other securities by individuals with access to non-public, material information about the company.

Nonpublic Information

Information that is not available to the general public, often insider or confidential information that could influence decisions if released.

Tipped Information

Insider information that has been unofficially disclosed to someone who is not authorized to have it.