Scenario 9.5 Tom Bergman, Owner and Operator of the Earplug Superstore, Is

question 101

Multiple Choice

Scenario 9.5
Tom Bergman, owner and operator of the Earplug Superstore, is reviewing the costs associated with the store's best-selling hearing aid, the BZ15. The data available to Dr. Bergman concerning this device follow.
Demand = 25 units/week
Order cost = $3/order
Holding cost = $1.50/unit/year
The Earplug Superstore operates 52 weeks a year.
-Use the information in Scenario 9.5. Tom cuts the ordering cost in half by implementing a streamlined processing system. How many fewer units should he now order each time he places an order?

• A) less than or equal to 10 units
• B) greater than 10 but less than or equal to 15 units
• C) greater than 15 but less than or equal to 20 units
• D) greater than 20 units

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Definitions:

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An 18th-century Japanese woodblock printmaker known for his contributions to the development of full-color prints or "nishiki-e."

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