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Question 1 Tommy orders baking equipment, according to the EOQ model with each order being for 50 units. Their carrying cost is 10%, and their order cost is P200. The equipments were purchased at a price of P800 each. What is the optimal number of orders per year?
Response: 10
Edit Question 2 A company is planning to stock a new SKU which is classified as an A inventory item. The company has the following information: annual usage is 5,000 units; cost of the SKU is P300; ordering cost is P30 per order; and carrying cost is 10 percent per year of average inventory value held. How much is the optimal value per order?
Response: P30,000
Edit Question 3 Tommy orders baking equipment, according to the EOQ model with each order being for 50 units. Their carrying cost is 10%, and their order cost is P200. The equipments were purchased at a price of P800 each. How much is the minimum inventory cost at the EOQ level?
Response: P3,850
Edit Question 4 In the EOQ model, the average inventory per cycle over many cycles is Q/2.
Response: True
Edit Question 5 Tommy orders baking equipment, according to the EOQ model with each order being for 50 units. Their carrying cost is 10%, and their order cost is P200. The equipments were purchased at a price of P800 each. What is the annual value of the equipments purchased by Tommy?
Response: P40,000 400,000 Edit Question 6 The time between placing orders is the lead time.
Response: False
Edit Question 7 To be considered as inventory, goods must be finished and waiting for delivery.
Response: False
Edit Question 8 A company is planning to stock a new SKU which is classified as an A inventory item. The company has the following information: annual usage is 5,000 units; cost of the SKU is P300; ordering cost is P30 per
order; and carrying cost is 10 percent per year of average inventory value held. How much is the minimum inventory cost at the EOQ level?
Response: P3,000
Edit Question 9 Which cost would not be considered part of a holding cost?
Response: shipping cost
Edit Question 10 A company is planning to stock a new SKU which is classified as an A inventory item. The annual usage for this SKU is 5,350 units; cost of the SKU is P360 per unit; ordering cost is P50 per order; carrying cost is 25% per year of inventory value held. Determine the total annual value usage.
Response: P1,926,000
Question 1 of 10 2 Points A company is planning to stock a new SKU which is classified as an A inventory item. The company has the following information: annual usage is 5,000 units; cost of the SKU is P300; ordering cost is P30 per order; and carrying cost is 10 percent per year of average inventory value held. What is the optimal number of orders per year? Select the correct response:
500
25
50
5
Question 3 of 10 2 Points A company is planning to stock a new SKU which is classified as an A inventory item. The company has the following information: annual usage is 5,000 units; cost of the SKU is P300; ordering cost is P30 per order; and carrying cost is 10 percent per year of average inventory value held. Determine the optimal number of units per order? Select the correct response:
75
100
60
150
Question 4 of 10 2 Points What is the term used for the cost incurred in maintaining an inventory? Select the correct response:
variable cost
fixed cost
ordering cost
carrying cost
Question 10 of 10 2 Points Inventory Select the correct response:
All of the alternatives are correct.
is not something that can be managed effectively.
is held against uncertain usage so that a supply of items is available if needed.
constitutes a small part of the cost of doing business.
Question 1 of 10 2 Points Caroline the owner of Caroline’s Boutique, Ltd., estimates that she will sell 40 decorator table this year worth 10,000.Heraccountantshavedeterminedthatorderingcostsamountsto25 per order and that the carrying costs amount to 12 ½ percent of the average inventory. How much is the total inventory cost of ordering 10 times a year? Select the correct response:
$278
$264
$313
$332
Question 6 of 10 2 Points The EOQ model Select the correct response:
considers total cost.
All of the alternatives are correct.
minimizes both ordering and holding costs.
determines only how frequently to order.
Question 3 of 10 2 Points A company is planning to stock a new SKU which is classified as an A inventory item. The annual usage for this SKU is 5,350 units; cost of the SKU is P360 per unit; ordering cost is P50 per order; carrying cost is 25% per year of inventory value held. Determine the optimal number of orders per year. Select the correct response:
59 orders per year
50 orders per year
69 orders per year
60 orders per year
Question 8 of 10 2 Points Caroline the owner of Caroline’s Boutique, Ltd., estimates that she will sell 40 decorator table this year worth $10,000. Her accountants have determined that ordering costs amounts to $25 per order and that the carrying costs amount to 12 ½ percent of the average inventory. How much is the total inventory cost of ordering 8 times a year? Select the correct response:
None of the choices
$250
$278
$264
Question 9 of 10 2 Points Constant demand is a key assumption of the EOQ model. Select the correct response:
True
False