You work for a retailer that sells computer games. One of those games is Quex. Answer the
Question:
You work for a retailer that sells computer games. One of those games is Quex. Answer the following questions using this information:
- Annual demand is 3,000 games
- Ordering cost is $50 each time an order is placed
- Inventory holding/carrying cost is 20% of the item purchase cost
- Purchase cost is $20 per game
You are currently ordering 1000 games each time you place an order. What is the total annual cost? What are the ordering costs? What are the holding/carrying costs?
$6,050, $50, $6,000 | ||
$2,150, $150, $2,000 | ||
$1,100, $500, $600 | ||
$250, $150, $100 |
You work for a retailer that sells computer games. One of those games is Quex. Answer the following questions using this information:
- Annual demand is 3,000 games
- Ordering cost is $50 each time an order is placed
- Inventory holding/carrying cost is 20% of the item purchase cost
- Purchase cost is $20 per game
You decide to decrease the amount that you order each time from 1000 games to 300 games. What is the total annual cost? What are the ordering costs? What are the holding/carrying costs?
$6,050, $50, $6,000 | ||
$530, $500, $30 | ||
$2,150, $150, $2,000 | ||
$1,100, $500, $600 |
You work for a retailer that sells computer games. One of those games is Quex. Answer the following questions using this information:
- Annual demand is 3,000 games
- Ordering cost is $50 each time an order is placed
- Inventory holding/carrying cost is 20% of the item purchase cost
- Purchase cost is $20 per game
What is the total annual cost if you order the EOQ?
$274 | ||
$1,095 | ||
$1,225 | ||
$245 |
You work for a retailer that sells computer games. One of those games is Quex. You have been ordering 1000 games each time you place an order. If you order less
Ordering cost increases, holding/carrying cost decreases. | ||
Ordering cost decreases, holding/carrying cost increases. | ||
Ordering cost and holding/carrying cost remain the same. |
You work for a retailer that sells computer games. One of those games is Quex. You have been ordering 1000 games each time you place an order. When you order less, why does ordering cost increase?
Since you are ordering less, you have to place fewer orders to meet annual demand. | ||
Since you are ordering less, you have less in inventory. | ||
Since you are ordering less, you have to place more orders to meet annual demand | ||
Since you are ordering less, you have more in inventory. |