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Emil Traders, Inc. sells cellphone cases which it buys from a local manufacturer. Emil Traders sells 21,600 cases evenly throughout the year. The cost of
Emil Traders, Inc. sells cellphone cases which it buys from a local manufacturer. Emil Traders sells 21,600 cases evenly throughout the year. The cost of carrying one unit in inventory for one year is P0.144 and the ordering cost per order is P 30. The number of working days in a year is 360. And the normal lead time is 18 days. Match each item to a choice: What is the reorder point? If Emil Traders would buy in economic order quantities, compute the total cost (total ordering plus total carrying cost) of obtaining inventory per year. What is the economic order quantity? Assuming that occasionally, the company experiences delay in the delivery of cellphone cases, such that the lead time reaches a maximum of 25 days, how many units of safety stock should the company maintain? What is the average inventory? Assuming that occasionally, the company experiences delay in the delivery of cellphone cases, such that the lead time reaches a maximum of 25 days, what is the average inventory? Choices: 1,920 1,850 432 #1,500 420 #3,000 1,600 1,080 # 1,100 #205
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