A Company That Embroiders T-Shirts, Uses 15,000 Plain T-Shirts Annually

Multiple Choice

A company that embroiders t-shirts, uses 15,000 plain t-shirts annually. The optimal order quantity is 500 shirts. The company embroiders approximately 150 shirts daily. Using the ____ calculations, the company knows it should place an order approximately every 3 days.

A) materials requirement planning
B) just-in-time inventory management
C) break-even
D) economic order quantity
E) independent demand