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1.A company has calculated the economic order quantity for one of its inventory items to be 35,000 units. The inventory costs Tk.25 per unit.

 

1.A company has calculated the economic order quantity for one of its inventory items to be 35,000 units. The inventory costs Tk.25 per unit. The percentage carrying cost is 20 percent, while the desired safety stock of 5,000 is maintained. What is the average, value of the inventory that can be available at any time? o Tk.562,500 o Tk.125,750 o Tk.200,000 o Tk. 1,000,000 2.Rahmania Company's economic order quantity for an inventory item is 5,000 units and it maintains a safety stock of 500 units. Rahmania receives delivery of inventory item within 18 days of placing order, while it places a new order every 6 days. What is Rahmania's orders in transit for the inventory. 16,500 units 9,000 units 15,000 units 30,000 units 3.By installing a lockbox system, a firm has brought its collection float down to 4 days from the previous 7 days. The firm's daily collection is Tk.40,000 and its opportunity cost is 8% per year. What is the firm's annual savings resulting from the reduction in collection float. Tk.22,400 Tk. 12,800. Tk.9,600 Tk.3,200

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