# Smath311lc Inventorypart1

• 3 weeks ago
• PDF

This document was uploaded by user and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this DMCA report form.

### More details

• Words: 964
• Pages: 8
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

February 2021 0
February 2021 3