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2. The reorder point of the company is 170 units of material A. The company's average daily usage of this material is 20 units and it takes 7 day for the supplier to deliver an order by the company. What is the base stock for this material? a. 140 units b. 30 units c. 20 units d. 150 units 3. If the average daily usage of the material is 25 units and it takes five days for the supplier to deliver an order of the said material, what will the reorder point be if the base stock of this material is 40 units? a. 165 units b. 65 units c. 125 units d. 200 units 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 b. 735 units c. 910 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 b. 150 meters c. 600 meters d. 840 meters 7. With the same example in number 5, what is the lead time demand? a. 150 meters b. 840 meters c, 120 meters d. 600 meters 8. How much is the carrying cost of the inventory? a. P 18 b. P12.60 c. P22.50 d. P12.00 9. Using the EOQ, how many orders will be placed in one year? a. 20 times b. 19 times C. 21 times d. 22 times 10. What is the maximum number of meters in inventory assuming normal lead time and usage? a. 750 meters b. 600 meters C. 840 meters d. 720 meters 11. Richwell Factory, producer of footwear, has developed the following data as their guide in raw materials management for their premium leather item: Normal daily usage 120 sq.ft Maximum daily usage 150 sq. ft. Working days in a week 6 days Normal lead time for a supplier to deliver an order 7 days Maximum lead time for supplier to deliver an order 8 day Carrying cost of inventory per sq. ft.of leather P0.50 sq.ft. Economic order quantity 300 sq.ft What is the safety stock of the company for this material? a. 360 sq.st C. 480 sq.ft b. 369 sq. ft. d. 330 sq. ft. 12. Using th same data above, what is the reorder point of the item? a. 1,200 sq/ft. b. 1,080 sq. ft. c. 720 sq.ft. d. 960 sq.ft