Table $5.5$
You are the operations manager of a firm that uses the continuous review inventory control system. Suppose the firm operates 52 weeks a year and has the following characteristics for its primary item:

-Use the information in Table 5.5. What is the economic order quantity for this item?
A) less than 400 units
B) greater than 400 but less than or equal to 450 units
C) greater than 450 but less than or equal to 500 units
D) greater than 500 units

Question

Table $5.5$
You are the operations manager of a firm that uses the continuous review inventory control system. Suppose the firm operates 52 weeks a year and has the following characteristics for its primary item:

-Use the information in Table 5.5. What is the economic order quantity for this item?
A) less than 400 units 
B) greater than 400 but less than or equal to 450 units 
C) greater than 450 but less than or equal to 500 units 
D) greater than 500 units

Quizplus · Accepted Answer

The economic order quantity (EOQ) is calculated using the EOQ formula, which typically results in a value that falls within the range specified in choice B.

Table 5.55.55.5 You Are the Operations Manager of a Firm That Uses

Table $5.5$ You Are the Operations Manager of a Firm That Uses