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ella [17]
3 years ago
6

If annual demand is 12,000 units, the ordering cost is $6 per order, and the holding cost is $2.50 per unit per year, which of t

he following is the optimal order quantity using the fixed-order quantity model?
A. 421
B. 234
C. 78
D. 26
E. 312
Business
1 answer:
vredina [299]3 years ago
6 0

Answer:

240 units

Explanation:

We can find Optimal order quantity easily by Optimal order quantity formula using the fixed order quantity formula  

Formula::  Optimal order quantity = \sqrt[2]{\frac{2CoD}{Ch} }

Where

Co = Ordering cost per order

D = Annual demand

Ch = Holding cost per unit

Calculations

Lets put in the values

Optimal order quantity = \sqrt[2]{\frac{2CoD}{Ch} }

Optimal order quantity = \sqrt[2]{\frac{2*6*12000}{2.5} }

Optimal order quantity = 240 units

Note: There must have been a mistake in question options the answer is 240 and closest to 240 is option B

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_____ power derives from a position of authority inside the organization and is sometimes referred to as formal authority.
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5 0
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OK Dry-Cleaning advertises so effectively that the regular customers of its competitor, Purity Cleaners, patronize OK instead of
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Answer:

a. a lawful action that is not a tort.

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Knowledge Check 01 On January 1, Year 1, Abbott Company granted 92,000 stock options to certain executives. The options are exer
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Answer:

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Using this formula

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5 0
2 years ago
Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all invest
My name is Ann [436]

Answer:

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Explanation:

The computation of the net present value of B is shown below:

Year         Cash flows         PVIFA factor at 15%      Present value

0              -$15,600                  1                                -$15,600

1                   0                        0.8696                              0

2                  0                        0.7561                                0

3                25,800                0.6575                      $16,963.50

Net present value                                                   $1,363.50

3 0
3 years ago
The primary purpose of the legal reserve requirement is to:
Marta_Voda [28]

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