1. The purchasing manager of XYZ Company is ordering 2000 pcs of Item A by default every 2 months having a demand of 10000 per year .The ordering cost amounts to BD 10 while the carrying cost of BD 2. What is the Total Cost if the manager will maintain the order quantity? a. BD1050 b. BD 1000 c. BD 5008 d. BD 800 e. None of the answers are correct

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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1. The purchasing manager of XYZ Company is ordering 2000 pcs of Item A by default every 2 months having a demand of 10000 per year .The ordering cost amounts to BD 10 while the carrying cost of BD 2. What is the Total Cost if the manager will maintain the order quantity?

a. BD1050

b. BD 1000

c. BD 5008

d. BD 800

e. None of the answers are correct

2. Mr. Ulrich is the procurement manager of Triple U Limited and he orders 1000 pcs of Item A by default every 3 months having a demand of 5000 per year .The ordering cost amounts to BD 10 while the carrying cost of BD 2. What will be the total cost if you will use the optimum quantity instead of 1000 pcs?

a. BD450.56

b. BD800.45

c. BD 447.21

d. BD 500.0

e. BD1200.25

3. Keto Basics is a healthy restaurant that aims to help people reduce weight. They deliver food to individual based on the diet plan, The company uses 10500 pcs of carton boxes every other month , What is the annual demand?

a.90,000

b.6,600

c.63,000

d.10,000

e.90,000

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