Chain Company has developed the following data from its Material A:

Safety stock 280 units

Average daily usage 200 units

EOQ 1,000 units

Cost of placing one order P 20

Working days per year 250 days

Lead time 6 days

21) What is the reorder point? A. 1,480 B. 1,720 C. 1,360 D. 2,200

22) What is the absolute maximum inventory? A.1,280 units B. 800 units C.1,040 units D.1,400 units

23) What is the normal maximum inventory? A.1,280 units B.1,400 units C. 800 units D.1,040 units

24) What is the cost of carrying an inventory per unit per year? A. P1.00 B. P0.50 C. P2.00 D. P1.50

25) What is the average inventory? A. 740 B. 1,020 C. 500 D. 780