Choose the CORRECT ANSWERS and give COMPLETE solution/explanation.

4. The company presently has an inventory of XYZ material of 670 units after two days that a delivery of 800 units was made by a supplier. The company uses the material at almost the same quantity everyday. It takes two weeks for the supplier to deliver an order. The company uses the base stock method in managing its raw materials inventory and has a base stock of 65 units for this material. It operates for seven days a week. What is the base stock for this material? a. 975 units c. 910 units b. 735 units d. 865 units 5. The following information were taken form the book of Pogi, inc Garments Factory pertaining to one of its most saleable shirt: Annual requirement 12,500 meters Cost of the fabric P 75 per meter Ordering cost (calls for placing an order, freight-in charges P 250 Carrying cost of inventory 0.2& of one day inventory Base stock 150 meters Average daily requirement 120 meters Number of days to deliver an order of fabric 5 days Normally, the company would carry in inventory the requirement for one week. For questions 5 to 10, round up you answers to the nearest whole number. What is the economic order quantity? a. 417 meters c. 590 meters b. 625 meters d. 745 meters 6. Using the above example, what is the reorder point? a. 750 meters c. 600 meters b. 150 meters d. 840 meters