Aretail outlet for calculators sells 700 calculators per year. it costs $2 to store one calculator for a year. to reorder, there is a fixed cost of $7, plus $1.65 for each calculator. how many times per year should the store order calculators, and in what lot size, in order to minimize inventory costs?

Times to order:  10 times

Lot size to order: 70 calculators per order

Explanation:

Economic Order Quantity is the quantity that minimizes inventory relevant cost-holding cost and ordering cost.

So the number of times to order per year in order to minimize inventory costs can be obtained by using Economic Order Quantity (EOQ) formula:

EOQ=

O= ordering cost per order, D = Annual demand and H= holding cost (storage cost)

EOQ =

EOQ=

EOQ= .

EOQ= 70 units.

So the number of times to order per year to minimize inventory cost is given by dividing annual demand by economic order quantity :

      Annual demand (D)

=     _____________

            EOQ

       700

=     ___

       70

=  10 times.

the correct answer is:     [c]:     " cyclical unemployment " .

credit history is used by lenders to determine whether you are a 'risky' person to give their money to.

having a short history provide very little data for the lenders. they wouldn't be able to determine your credit behavior from such a small samples. even if they are perfect.

having long credit history with few blemishes provide larger and more accurate data for the lenders to predict your credit behavior.