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8. The annual demand for tennis racquets is 50,000 units, and carrying costs amount to P2 per unit. Order costs of the company amount to

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8. The annual demand for tennis racquets is 50,000 units, and carrying costs amount to P2 per unit. Order costs of the company amount to P5. The optimum order quantity in units for tennis racquets is (rounded to the nearest unit): a. 500 b. 250 c. 100 d. 625 9. The following data is available for Taurus Company's material YY: Assuming that the units of Material YY will be required evenly throughout the year, the order point would be: a. 2,800 b. 2,000 c. 2,105 d. 1,200 10. The Leo Company wishes to determine the amount of safety stock that it should maintain for Product D to result in the lowest cost. The following information is available: The options available to Leo are as follows: fe Stock What is the number of units. of safety stock that will result in the lowest cost? a. 55 b. 50 c. 50 d. 10 11. Aries Compny has an order point at 1,400 units, usage during normal lead time of 600 units, and an EOQ of 2,000 units. Its maximum inventory assuming normal lead time and usage, would be: a. 2,800 units b. 3,400 units c. 2,000 units d. 1,200 units 12. The following data refer to various annual costs relating to the inventory of a single product company: What is the annual carrying cost per unit? a. P.30 b. P.42 c. P.50 d. P.22 13. The following data relates to Bull Company's Material X: Assuming that the units of Material X will be required evenly throughout the year, the safety stock and order point would be: 14. Venus Manufacturing Company uses 1,000 units of Chip annually in its production. Order costs consist of P10 for placing a long-distance call to make the order and P40 for delivering the order by truck to the company warehouse. Each Chip costs P100 and the carrying costs are estimated at 15.625% of the inventory cost. What is the economic order quantity for Chip? a. 80 b. 90 c. 100 d. 120 15. Using the data in No. 14, what is the total order cost? a. P625 b. P550 c. P525 d. P650 16. Using the data in No. 14, what is the carrying cost for the year? a. P625 b. P650 c. P550 d. P525

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