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TEMS 11 to 13 ARE BASED ON THE FOLLOWING INFORMATION

TEMS 11 to 13 ARE BASED ON THE FOLLOWING INFORMATION

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
Problem 7E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...
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ITEMS 11 to 13 ARE BASED ON THE FOLLOWING INFORMATION:

 

ITEMS 14 and 15 ARE BASED ON THE FOLLOWING INFORMATION:

 

and items 15-17

ITEMS 11 to 13 ARE BASED ON THE FOLLOOWING INFORMATION: Emil Traders, Inc. sells cellphone cases which it buys from a local manufacturer. Emil Traders sells 24,000 cases evenly throughout the year. The cost of carrying one unit in inventory for one year is P11.52 and the order cost per order is P38.40. 11. What is the economic order quantity? a. 400 b. 283 Ac с. 200 d. 625 Co or 12. If Emil Traders would buy in economic order quantities, the total order costs is a. P921,600. b. P 2,304. Se с. Р 76,800. d. 460,800. 13. If Emil. Traders would buy in economic order quantities, the total inventory carrying costs per year is a. P276,480. b. P 2,304. Co c. P 23,040. d. P138,240 Dc ITEMS 14 and 15 ARE BASED ON THE FOLLOWING INFORMATION: En The following information is available for Edgar Corporation's Material X Annual usage Working days per year Normal lead time 12,600 units 360 days 20 days The units of Material X are required evenly throughout the year. 14. What is the reorder point? a. 35 units c. 700 units b. 20th day d. 630 units
Transcribed Image Text:ITEMS 11 to 13 ARE BASED ON THE FOLLOOWING INFORMATION: Emil Traders, Inc. sells cellphone cases which it buys from a local manufacturer. Emil Traders sells 24,000 cases evenly throughout the year. The cost of carrying one unit in inventory for one year is P11.52 and the order cost per order is P38.40. 11. What is the economic order quantity? a. 400 b. 283 Ac с. 200 d. 625 Co or 12. If Emil Traders would buy in economic order quantities, the total order costs is a. P921,600. b. P 2,304. Se с. Р 76,800. d. 460,800. 13. If Emil. Traders would buy in economic order quantities, the total inventory carrying costs per year is a. P276,480. b. P 2,304. Co c. P 23,040. d. P138,240 Dc ITEMS 14 and 15 ARE BASED ON THE FOLLOWING INFORMATION: En The following information is available for Edgar Corporation's Material X Annual usage Working days per year Normal lead time 12,600 units 360 days 20 days The units of Material X are required evenly throughout the year. 14. What is the reorder point? a. 35 units c. 700 units b. 20th day d. 630 units
15. Assuming that occasionally, the company experiences delay in the delivery of Material X, such that the lead time reaches a maximum of 30 days, how many units of safety stock should the company maintain and what is the reorder point? Safety Stock Reorder Point 350 1,050 a. b. 350 700 1,050 d. 1,050 700 16. The following information pertains to Annie Corporation's Material X: Annual usage Working days per year Normal lead time in working days Safety stock 25,200 units 360 days 30 days 1,050 units The maximum lead time in working days and the reorder point for Material X are Reorder Point 2,100 1,050 3,150 2,100 Maximum Lead Time 30 days b. а. 15 days 45 days d. c. 45 days 17. EOQ model, Ram Corporation determined the economic order quantity for a merchandise item to be 800 units. To avoid stockout costs, it maintains 200 units in safety stock. What is Ram Corporation's average inventory of such merchandise item? c. 500 units d. 1,000 units a. 400 units b. 600 units ITEMS 18 to 20 ARE BASED ON THE FOLLOWING INFORMATION:
Transcribed Image Text:15. Assuming that occasionally, the company experiences delay in the delivery of Material X, such that the lead time reaches a maximum of 30 days, how many units of safety stock should the company maintain and what is the reorder point? Safety Stock Reorder Point 350 1,050 a. b. 350 700 1,050 d. 1,050 700 16. The following information pertains to Annie Corporation's Material X: Annual usage Working days per year Normal lead time in working days Safety stock 25,200 units 360 days 30 days 1,050 units The maximum lead time in working days and the reorder point for Material X are Reorder Point 2,100 1,050 3,150 2,100 Maximum Lead Time 30 days b. а. 15 days 45 days d. c. 45 days 17. EOQ model, Ram Corporation determined the economic order quantity for a merchandise item to be 800 units. To avoid stockout costs, it maintains 200 units in safety stock. What is Ram Corporation's average inventory of such merchandise item? c. 500 units d. 1,000 units a. 400 units b. 600 units ITEMS 18 to 20 ARE BASED ON THE FOLLOWING INFORMATION:
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