Reference no: EM133061580
Question - Chain Company has developed the following data from its Material A:
Safety stock 280 units
Average (normal) daily usage 200 units
Maximum daily use 240 units
Minimum daily use 180 units
EOQ 1,000 units
Cost of placing one order P 20
Working days per year 250 days
Lead time 6 days
1) What is the reorder point?
A. 1,480 B. 1,720 C. 1,360 D. 2,200
2) What is the absolute maximum inventory?
A. 1,280 units B. 800 units C. 1,040 units D. 1,400 units
3) What is the normal maximum inventory?
A. 1,280 units B. 1,400 units C. 800 units D. 1,040 units
4) What is the cost of carrying an inventory per unit per year?
A. P1.00 B. P0.50 C. P2.00 D. P1.50
5) What is the average inventory?
A. 740 B. 1,020 C. 500 D. 780