A company orders 10,000 units (a one-year supply) of material X at one time. Material X costs P1 per unit, and order costs amount to P500 each time an order is placed. The costs to carry Material X in inventory amount to 20% of the materials cost. For an entire year, the inventory carrying costs and order costs are: 2. There are 1,000 trolls in stock, and 1,500 are due in from orders that were placed previously. The company sells Trolls at the rate of 100 per day and finds that it takes an average of 20 days for an order to be received. Because usage and lead times are known with certainty and because the company has determined that an order must be placed now, the desired safety stock quantity must be equal to: 3. Jess Company has a plant that manufactures transistor radios. One component transistors in March 2018. Jess estimates the ordering cost per an XT transistor. Expected demand is for 5,200 of these purchase order to be P250. The carrying cost for one unit of XT in stock is P5. What is the EOQ for the XT transistor? 5. Basketball, Inc. operates a megastore featuring sporta merchandise It uses EOQ decision model to make inventory decisions. It is now considering inventory decisions for its PBA's jerseys product line. This is a highly popular item. Data for 2018 are: . . . Expected annual demand for PBA Ordering costs for purchase order Carrying costs per year Each jersey costs Basketball, Inc. P40 ( 12% x P40 purchase price) plus P5.20 in relevant insurance, handling, and theft-related costs The purchasing lead time is 7 days. Basketball, Inc. is open 365 days a year. What is the EOQ? 10,000 P225 P10 per jersey a. 671 jerseys b. 751 jerseys c. 550 jerseys d. 851 jerseys 6. Using the data in No. 5, what is the number of orders that will be placed each year? 13. The following data relates to Bull Company's Material X: Annual usage in units Working days per year Normal lead time in working days Maximum lead time in working days 7,200 240 20 45 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? 15. Using the data in No. 14, what is the total order cost?