FIN 081 – Quiz Bowl
Easy
1 points each
Which of the following is a key feature of the Just-In-Time (JIT)
inventory management system?
A. Maintaining high inventory levels to prevent stockouts
B. Minimizing inventory levels and reducing waste by producing only
what is needed, when it is needed
C. Focusing on large batch production to lower unit costs
D. Increasing lead times to allow for better inventory management
B. Minimizing inventory levels and reducing waste by producing only
what is needed, when it is needed
A company sells 10,000 units of a product annually. The ordering cost is
₱50 per order, and the holding cost is ₱2 per unit per year.
Calculate the Economic Order Quantity (EOQ) for this company.
708 units
A business has an annual demand of 12,000 units. The ordering cost is
₱40 per order, and the holding cost is ₱1.50 per unit per year. The lead
time for delivery is 10 days, and the company operates 300 days per
year.
Calculate the EOQ.
800 units
A business has an annual demand of 12,000 units. The ordering cost is
₱40 per order, and the holding cost is ₱1.50 per unit per year. The lead
time for delivery is 10 days, and the company operates 300 days per
year.
Determine the reorder point (ROP).
400 units
A retailer has an annual demand of 8,000 units for a product. The
ordering cost is ₱30 per order, and the holding cost is ₱0.80 per unit
per year. The supplier offers an order discount of 2% if the company
purchases 2,000 units at a time.
Calculate the EOQ.
775 units
Melaking Pipe & Steel has projected sales of 300,000 pipes this year, an
ordering cost of 30 per order, and carrying costs of P5 per pipe. The
purchase price per unit is P60. The reorder point is 5,600 units. Use 360
days.
How long is the lead time?
7 days
Average
2 points each
A retailer has an annual demand of 8,000 units for a product. The
ordering cost is ₱30 per order, and the holding cost is ₱0.80 per unit
per year. The supplier offers an order discount of 2% if the company
purchases 1,500 units at a time.
How much is the total cost if the retailer accepted the offer?
P760
A company faces seasonal demand fluctuations. In the first half of the
year, the demand is 6,000 units, and in the second half, it increases to
10,000 units. The ordering cost is ₱100 per order, and the holding cost
is ₱5 per unit per year.
Calculate the EOQ for each half of the year.
490 units and 632 units
A manufacturer has a demand of 20,000 units annually. The ordering
cost is ₱60 per order, and the holding cost is ₱3 per unit per year.
However, due to limited storage space, the manufacturer can only store
a maximum of 500 units at a time.
How much is the total ordering cost and total carrying cost?
Total OC = P2,400
Total CC= P750
Aiko Corporation needs to know how frequently to place their orders. The information are as follows:
Units per month needed 6,000 units Normal lead time 8 days
Cost per order P25/order Maximum lead time 12 days
Carrying cost per order P4/unit Number of days in a month 30 days
What is the re-order point?
2,400 units
Melaking Pipe & Steel has projected sales of 288,000 pipes this year, an
ordering cost of 30 per order, and carrying costs of P5 per pipe. The
purchase price per unit is P60.
The reorder point without safety stock is 5,600 units
The total carrying cost is P20,647.58
Use 360 days.
What is the maximum lead time?
11 days
Difficult
3 points each
Aiko Corporation needs to know how frequently to place their orders. The information are as follows:
Units per month needed 6,000 units Normal lead time 8 days
Cost per order P25/order Maximum lead time 12 days
Carrying cost per order P4/unit Number of days in a month 30 days
How much is the total cost?
P6,995
A local company in the Philippines sells 25,000 units of a product
annually. The supplier offers the following discounts based on order
size:
For orders of up to 1,000 units, no discount.
For orders between 1,001 and 2,500 units, a 2% discount.
For orders above 2,500 units, a 5% discount.
The price of each unit is ₱100, the ordering cost is ₱200 per order, and
the holding cost is 5% of the unit price per year. There is also a setup
cost of ₱500 for orders involving discounted prices.
Compute the EOQ.
1,429 units
A company has an annual demand of 50,000 units for a product. The
ordering cost is ₱200 per order, and the holding cost is 20% of the
purchase price. The supplier offers the following discount schedule:
For orders below 1,000 units: no discount
For orders between 1,000 and 2,000 units: 5% discount on the purchase price
For orders over 2,000 units: 10% discount on the purchase price
The purchase price is ₱20 per unit.
Compute the EOQ.
2,358 units
