1. The order cost per order of an inventory of Leni Inc. is P400 with an annual carrying cost of P10 per unit. The economic order quantity for annual demand of 2,000 units is; *

A. 480 B. 500 C. 400 D. 440

2. Pacman operates its factory 300 days per year. Its annual used of material X is 300,000 gallons. It carries a 2,500-gallon safety stock material and its lead time is 3 business days. What is the order point of material X?

A. 3,000 B. 5,500 C. 14,500 D. 5,000

3. BBM Corp. uses 10,500 yards of material B each day to make shirts. It usually takes 10 days from the time BBM orders the material when it is received. If BMM desired a safety stock of 21,000 yards, what is the order point? *

A. 21,000 B. 157,500 C. 126,000 D. 94,500