How many times per year would Item X be ordered? *
Item X is a standard item stocked in a company’s inventory of spare parts. Each year, the firm uses about 2,000 units of Item X, which costs Php 1,000 per unit. Storage costs, which include insurance and cost of capital, amount to 18 percent of item unit cost. Placing an order for more of Item X costs Php 400. The company operates 360 days per year and Item X is received 9 days after placement of order.
How many times per year would Item X be ordered? *
None of the above
21x
50x
40x
What is Item X's average inventory level? *
40 units
223 units
None of the above
48 units
How much would be Item X's total annual purchasing cost? *
None of the above
Php 8,485
Php 2,000,000
Php 16,971
How much would be Item X's total annual procurement cost? *
Php 16,971
Php 2,000,000
None of the above
Php 8,485
How much would be Item X's total annual storage cost? *
Php 8,485
Php 16,971
Php 2,000,000
None of the above
How much would be Item X's total annual stockout cost? *
Php 16,971
Zero
None of the above
Php 8,485
Including its total annual purchasing cost, how much would be Item X's total annual inventory cost? *
Php 2,016,971
None of the above
Php 2,008,485
Php 2,000,000
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