Question: If an item is ordered using its economic order quantity, the annual carrying cost should be twice the annual purchase price . . the square

If an item is ordered using its economic order quantity, the annual carrying cost should be twice the annual purchase price .. the square root of the annual ordering cost. none of the above. slightly less than the annual ordering cost. equal to the annual ordering cost.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Q:

If an item is ordered using its economic order quantity, the annual carrying cost should be: none of the above. equal to the annual ordering cost. twice the annual purchase price. the square root of...

Q:

Which strategy allows finished goods inventories to accrue and relies on backlogs to handle the demand? The Level Production Strategy The Chase Production Strategy Mixed Production Strategy The...

Q:

D Question 38 If you order an item by its economic order quantity, the annual carrying cost should be. O equal to the annual ordering cost. O cannot be determined because there is insufficient...

Q:

1. The following particulars were collected for the year 2015 from Need LLC Monthly demand 2,000 units Cost of placing an order RO 225. Annual carrying cost per unit 8% Purchase price of input unit...

Q:

Problem 7. Economic order quantity; order cost; carrying cost Patriot Company predicts that it will use 360,000 gallons of material during the year. The material is expected to cost FS per gallon....

Q:

If an item has a unit cost of $10, if the item is ordered using the optimal order quantity (also known as the "economic order quantity") in a "fixed-quantity" inventory management system and if the...

Q:

Question 2: A retailer buys 2500 units of product A annually from its supplier. The unit holding cost of product A per year is $1.5, order cost is $18.75. Lead time is 2 days. Retailer runs the...

Q:

QUESTION 2 Rail can be cost effective for bulky items True False QUESTION 3 The use of resources within the organization to provide goods or services are called core competencies. True False QUESTION...

Q:

10 Water mode of transportation is a) most expensive on a per-pound basis b) cost effective for bulky items c) very high speed & reliability d) quickest mode of delivery 11 Which of these is not a...

Q:

The economic order quantity formula is Multiple choice question. Twice the square root of the annual quantity ordered divided by the order cost plus the carrying cost per unit The square root of the...

Q:

Discuss the advantages and disadvantages of the following forms of managerial compensation in terms of mitigating agency problems, that is, potential conflicts of interest between managers and...

Q:

12. Find the matrix B if T T 6 3 -5 6. -16 17 1 B+ 2 23 8 3 - 3 8 -9 -16 26.5 1 4 -4 2

Q:

Is ( are ) more appropriate for long - term investments.

Q:

WACC The Patrick Company's year-end balance sheet is shown below. Its cost of common equity is 18%, its before-tax cost of debt is 11%, and its marginal tax rate is 40%. Assume that the firm's...