Started: Dec 18 at 7:14pm Quiz Instructions There are 35 questions on this exam

Question

Started: Dec 18 at 7:14pm Quiz Instructions There are 35 questions on this exam worth a total of 75 points. Most are worth 1 or 2 points, some are worth 4 or 5 points. Manage your time accordingly DQuestion 3 2 pts Every year a bookstore chain sells about 7200 copies of The Art of the Steal. Assume that the assumptions of the EOQ model are satisfied. If the chain orders in quantities of 1800 copies each time it places an order, then: Itcarries an average inventory of books and orders 4 lines a year O It carries an average inventory of 1800 books and orders 4 times a year ltcarries an average inventory of 900 books and orders 2 times a year Itcarries an average inventory 011800 books and oners 3 times a year Next . Previous Submit Quiz No new data to save. Last checked at 7:48pm

Explanation / Answer

Annual demand (D) = 7200 books

Order quantity (Q) = 1800 books

Average inventory = Q/2 = 1800/2 = 900 books

Number of orders per year = D/Q = 7200/1800 = 4 times

So it carries an average inventory of 900 books and orders 4 times a year

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.