WGU C723 Quantative Analysis For Business (HFO1) 

HFO1 Exam – Questions and Answers

A creamery purchases three different types of cheese: panela cheese at $3.75 per pound, goat cheese at $7.10 per pound, and Oaxaca cheese at $4.50 per pound. The daily demand for each cheese is 45, 22, and 63 pounds respectively. The creamery has a dedicated supplier for each type of cheese, and the ordering cost is $2.00 per order. It is expensive to keep these products in inventory because they are highly perishable. The holding cost is estimated to be 0.5% of the purchasing price for each type of cheese.
What is the estimated economic order quantity for the panela cheese?

• 187 pounds
• 19 pounds
• 190 pounds
• ✔ 98 pounds
• 1,872 pounds

A math lab at a community college must keep ink cartridges in inventory so that when a printer is running out of ink, it is immediately replaced. Historical data from the last 10 years has been used to forecast a monthly demand of 16 cartridges for the coming calendar year. It has been estimated that it costs 1.6% of the cartridge price to keep an ink cartridge in inventory for one year. The cost of placing an order is two dollars and the purchasing price is $30 per unit.
What is the economic order quantity?

• 13 units
• ✔ 40 units
• 126 units
• 4 units

A small manufacturer of mountain bikes located in Denver, Colorado, buys tires from a supplier in China. The manufacturer has a monthly demand of 200 tires. The cost of placing an order is $200, and the holding cost is $24 per tire per year.
If the purchasing price is $45 per tire, and the economic order quantity is used, what is the total annual ordering cost?

• $4,800
• $1,386
• $20,000
• $693
• ✔ $2,400

Based on the spreadsheet variables, which EOQ assumption is correct?

• Demand does not fluctuate.
• ✔ Order costs remain constant.
• Lead time does not fluctuate.
• Holding costs remain constant.

Based on the spreadsheet variables, which EOQ assumption is correct?

• Demand does not fluctuate.
• ✔ Lead time does not fluctuate.
• Order costs remain constant.
• Holding costs remain constant.

What is the average inventory?

• $525
• $550
• $675
• ✔ $600
• Students place their trust in exam experts who prioritize reliability, integrity, and measurable results. Through continuous support, transparent processes, and a strong success record, ProctoredExamsExperts.com empowers learners to perform at their best while enjoying complete peace of mind.You can get this questions from us just reach out.