Suppose a company is using a P inventory system for a certain product, with a Target inventory position of $775$ units. It is time to review its inventory and place an order. The manager counts a total of $425$ units on the store shelves. It is also already scheduled to receive an order of $40$ units. Customers have $90$ units on backorder. How many units should be ordered? Pick the closest answer.

Suppose a company is using a P inventory system for a certain product, with a Target inventory position of $775$ units. It is time to review its inventory and place an order. The manager counts a total of $425$ units on the store shelves. It is also already scheduled to receive an order of $40$ units. Customers have $90$ units on backorder. How many units should be ordered? Pick the closest answer.

$0$

$90$

$350$

$400$

$450$

$775$

Question at position $34$

$34$

$1$ point

Question at position $34$

Suppose a manager estimates annual holding costs to be $$2,000,$ and annual ordering costs to be $$10,000.$ Assuming the manager$$s situation meets the assumptions of the EOQ model, what can you say about the manager$$s order quantity $($Q$)?$

Suppose a manager estimates annual holding costs to be $$2,000,$ and annual ordering costs to be $$10,000.$ Assuming the manager$$s situation meets the assumptions of the EOQ model, what can you say about the manager$$s order quantity $($Q$)?$

It is too big

It is too small

It is just right

Cannot tell from the information provided

Question at position $35$

$35$