CSCP Practice Test 13

10 free CSCP practice questions in the real exam format, covering the official content areas, with an explanation for every answer.

CSCP Practice Test 13Tutor mode

Question 1 of 10

Source Products and Services

A distributor buys 4,000 pump seals a year. Ordering cost is $50 per order, and annual carrying cost is 20% of the unit price. The supplier offers the price breaks below. The buyer is comparing the EOQ at the $20.00 price (316 units) with ordering at the 500-unit and 1,000-unit price breaks. What is the lowest total annual cost (purchase + ordering + carrying)?

Supplier price breaks
Order quantity (units)	Unit price
1–499	$20.00
500–999	$19.00
1,000 or more	$18.50

Ordering cost = (annual demand ÷ Q) × $50; carrying cost = (Q ÷ 2) × 20% × unit price.