The document provides inventory and reorder level data for Pluto Company. It includes information like the economic order quantity, average and maximum daily use, lead time, safety stock, and costs of carrying inventory and placing orders. This data can be used to calculate the reorder point, average inventory, maximum inventory, and cost of placing one order.
The document provides inventory and reorder level data for Pluto Company. It includes information like the economic order quantity, average and maximum daily use, lead time, safety stock, and costs of carrying inventory and placing orders. This data can be used to calculate the reorder point, average inventory, maximum inventory, and cost of placing one order.
The document provides inventory and reorder level data for Pluto Company. It includes information like the economic order quantity, average and maximum daily use, lead time, safety stock, and costs of carrying inventory and placing orders. This data can be used to calculate the reorder point, average inventory, maximum inventory, and cost of placing one order.
The document provides inventory and reorder level data for Pluto Company. It includes information like the economic order quantity, average and maximum daily use, lead time, safety stock, and costs of carrying inventory and placing orders. This data can be used to calculate the reorder point, average inventory, maximum inventory, and cost of placing one order.
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17.
Pluto Company has developed the following data to assist in controlling one of its material inventory items:
Economic order quantity 1,000 liters
Average daily use 100 liters Maximum daily use 120 liters Working days per year 250 days Safety stock 140 liters Cost of carrying inventory P1.00 per liter per year Lead time 7 working days What is the reorder point?
a. 840 liters b. 800 liters c. 900 liters d. 830 liters
18. Using the data in No. 17, what is the average inventory?
a. 640 liters b. 650 liters c. 740 liters d. 700 liters
19. Using the data in No. 17, what is the maximum inventory assuming normal lead time and usage?
a. 1,140 liters b. 1,400 liters c. 1,200 liters d. 1,240 liters
20. Using the data in No. 17, what is the cost of placing one order? a. P20 b. P25 c. P30 d. P35 21. The Cloth Center, Inc. buys and sells fabrics to a wide range ofChapter 2 industrial and consumer users. One of the product it carries is2 denim cloth, use in the manufacture of jeans and carrying bags. The supplier for the denim cloth pays all incoming freight. No incoming inspection of the denim is necessary because the supplier has a track record of delivering high-quality merchandise. The purchasing officer of the Cloth Center, Inc. has collected the following information:
Annual demand for denim cloth 20,000 yards
Ordering costs per purchase order P160 Carrying costs per year 205 of purchase costs Safety stock requirements None Cost of denim cloth P8 per year The purchasing lead time is 2 weeks. The Cloth Center is open 250 days a year (50 weeks for 5 days a week)
What is the EOQ for denim cloth?
a. 2,000 yards b. 2,200 yards c. 1,500 yards d. 2,500 yards the number of orders that will be 22. Using the data in No. 21, what is placed each year?
a. 10 orders b. 12 orders c. 15 orders d. 20 orders 23. Using the data in No.
a. 800 yards b. 400 yards Chapter 3 c. 500 yards 2 d. 700 yards Chapter 4 2
