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1. AA Company has an annual usage of 100 units of Item X having a purchase price of P55 per unit. The following data are
1. AA Company has an annual usage of 100 units of Item X having a purchase price of P55 per unit. The following data are applicable to Item X: Ordering Cost P5 per order Carrying cost percentage 15% Required: Compute the Economic Order Quantity (round all answers to the nearest whole Re. Number 2. BB Company estimates a need for 2,250 units next year at a cost of P3 per unit. The estimated carrying cost is 20%, and the cost to place an order is P12. Required: Compute the Economic Order Quantity 3. CC Company has been buying product A in lots of 1,200 units, which represents a four-months supply. The cost per unit is P100; the order cost is P200 per order and the annual inventory carrying cost for one unit is P25 Required: Compute the economic order quantity 4. DD Company estimates that it will need 25,000 cartons next year at a cost of P8 per carton. The estimated carrying cost is 25% of average inventory investment, and the cost to place an order is P20. Compute the economic order quantity 5. EE Company's usage of Material Y is 9,600 units during 240 working days per year. Normal lead time and maximum lead time are 20 working days and 35 working days, respectively. Assuming Material Y will be required evenly throughout the year, what is the safety stock and order point? 6. FF Company has obtained the following costs and other data pertaining to one of its materials: Order Quantity Normal use per day Maximum use per day Minimum use per day Lead time 3,500 units 500 units 600 units 100 units 5 days Required: Compute the following: (1) Safety stock (maximum) (2) Order point (3) Normal maximum inventory (4) Absolut maximum inventory
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