Choose the CORRECT ANSWERS and give COMPLETE solution/explanation. (Round up answers to the nearest whole number.)

5. The following information were taken form the book of Pogi, inc Garments Factory pertaining to one of its most saleable shirt: Annual requirement Cost of the fabric 12,500 meters Ordering cost (calls for placing an order, freight-in charges P 250 P 75 per meter Carrying cost of inventory Base stock 0.2& of one day inventory Average daily requirement 150 meters Number of days to deliver an order of fabric 120 meters 5 days Normally, the company would carry in inventory the requirement for one week. 7. With the same example in number 5, what is the lead time demand? a. 150 meters c, 120 meters b. 840 meters d. 600 meters 8. How much is the carrying cost of the inventory? a. P 18 c. P22.50 b. P12.60 d. P12.00 9. Using the EOQ, how many orders will be placed in one year? a. 20 times c. 21 times b. 19 times d. 22 times 10. What is the maximum number of meters in inventory assuming normal lead time and usage? c. 840 meters a. 750 meters d. 720 meters b. 600 meters