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Graeme Manages a Candy Store in a High Traffic Shopping

Question 15

Multiple Choice

Graeme manages a candy store in a high traffic shopping mall where he has collected the following information:
Weekly demand for small candy boxes = 90 boxes
Cost to place one purchase order with the box supplier = $19.80
Cost to hold one box for one year in inventory = $2.45
ead time = 2 weeks
Weeks in a year = 52 weeks
-The optimal replenishment level for the given fixed-period system (FPS) is:


A) less than 300 boxes.
B) more than or equal to 300 but less than 400 boxes.
C) more than or equal to 400 but less than 500 boxes.
D) more than or equal to 500 boxes.

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