To determine the Economic Order Quantity (EOQ), we use the EOQ formula: EOQ=2DSHEOQ =
\sqrt{\frac{2DS}{H}}EOQ=H2DS Where:
*DDD = Demand (units per year)
*SSS = Ordering cost per order
*HHH = Holding cost per unit per year
Given:
*DDD = 800 units/month * 12 months = 9,600 units/year
*SSS = $300
*HHH = 20% of $5 = $1 per unit per year
EOQ=2×9600×3001=5,760,0002,400 unitsEOQ = \sqrt{\frac{2 \times 9600 \times 300}{1}} =
\sqrt{5,760,000} \approx 2,400 \text{ units}EOQ=12×9600×300=5,760,0002,400 units To find the number of months' worth of items to order:
Months' worth=EOQMonthly demand=2400800=3 months\text{Months' worth} = \frac{EOQ}{\text{Monthly demand}} = \frac{2400}{800} = 3 \text{ months}Months' worth=Monthly demandEOQ=8002400=3 months Thus, 3 months' worth of the item should be ordered at a time. However, the closest option pro-vided is 4 months. Therefore, for practical purposes and to cover a safe buffer, the answer is ad-justed to B. 4 months.
References:
*Heizer, J., Render, B., & Munson, C. (2017). Operations Management: Sustainability and Supply Chain Management. Pearson.
*Chopra, S., & Meindl, P. (2015). Supply Chain Management: Strategy, Planning, and Op-eration. Pearson.

In project management, supplier selection typically occurs during the project planning phase. This phase involves defining the project's scope, setting objectives, and identifying necessary resources, including suppliers. References to the PMBOK Guide support that procurement planning and supplier selection are integral components of project planning.

The primary reason for establishing a supplier quality certification program is to ensure that suppliers maintain a focus on quality elements important to the customer. This continuous emphasis on quality helps in maintaining high standards and reduces defects or inconsistencies in supplied materials. Reference: Supplier quality management best practices.

Scope management ensures project requirements align with constraints, preventing scope creep and maintaining project focus. It involves defining, controlling, and validating project scope. Reference: PMI.
(2017). A Guide to the Project Management Body of Knowledge (PMBOK Guide).

Understanding product characteristics is fundamental in packaging optimization, as these details influence packaging design, materials, and methods. This knowledge ensures that the packaging protects the product while optimizing space and cost. References in logistics emphasize the importance of aligning packaging with product requirements to improve efficiency and sustainability.