per year. If Tim has a $90-$day working year he should

place an order about every

A$)8$ working days

B$)9$ working days

C$)10$ working days

D$)11$ working days

E$)12$ working days

Ans: C

$14)$ A DVD rental agency uses $90$ boxes of tape a year. The boxes cost $$2\mathrm{.}35$

each. It costs $$15$ to order tape, and carrying costs are $$0\mathrm{.}50$ per box per month.

If the company calculates the optimal order quantity and orders the nearest

number of boxes to the optimal quantity what will be the total anticipated cost of

holding tape in inventory for the year?

K$)$ $$5\mathrm{.}25$

L$)$ $$18\mathrm{.}37$

M$)$ $$21\mathrm{.}87$

N$)$ $$63\mathrm{.}00$

O$)$ $$211\mathrm{.}5$

Ans: D

$15)$ Leonard Presby, Inc., has an annual demand rate of $2000$ units per year but

can produce at an average production rate of $3000$ units per year. Setup cost is

$$30$; holding costs are $$4$ per unit per year. What is the optimal number of units

per production run $($to the nearest whole number$)?$

A$)174$

B$)300$

C$)320$

D$)380$

E$)$ None of the above are within $1$ unit of the correct answer

Ans: B

$16)$ Annual demand for notebook binders at Miller$$s Shop is $12,000$ units. Miller

operates his business $360$ days per year and finds that deliveries from his