The Assumptions of the Production Order Quantity Model Are Met

question 144

Multiple Choice

The assumptions of the production order quantity model are met in a situation where annual demand is 3650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand rate is 10 and the daily production rate is 100. The production order quantity for this problem is approximately

• A) 139
• B) 174
• C) 184
• D) 365
• E) 548

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Definitions:

Body Trait

A physical or physiological characteristic that is genetically determined.

Anatomical Position

When the body is standing upright and facing forward with the arms at the side and the palms of the hands facing forward.

Midline of Body

An imaginary line that divides the body into equal right and left halves, often used as a reference point in medical and fitness contexts.

Cardiovascular System

The body's system comprising the heart and blood vessels, responsible for circulating blood and oxygen throughout the body.