1-2. Duo Corporation operates its factory 300 days per year. Its annual consumption of Material Y is 1,200,000 gallons. It carries a 10,000 gallon safety stock of Material Y and its lead time is 12 business days. 1. What is the order point for Material Y? a. 10,000 gallons b. 38,000 gallons c. 48,000 gallons d. 58,000 gallons 2. If the EOQ for Material Y is 30,000 gallons, and the carrying cost per gallon per year is PO.25, what is the total annual carrying cost for Material Y? a. P3,750 ь. Р7.500 c. P6,250 d. P10,000 3. A company annually consumes 10,000 units of Part C. The carrying cost of this part is P2 per year and the ordering costs are P100. The company uses an order quantity of 500 units. If the company operates 200 days per year, and the lead time for ordering Part C is 5 days, what is the order point? a. 250 units b. 1,000 units 500 units d. 2,000 units с.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Pls answers number 1 to 4 with solutions
1– 2. Duo Corporation operates its factory 300 days per year. Its annual consumption of Material
Y is 1,200,000 gallons. It carries a 10,000 gallon safety stock of Material Y and its lead time is 12
business days.
1. What is the order point for Material Y?
a. 10,000 gallons
b. 38,000 gallons
c. 48,000 gallons
d. 58,000 gallons
2. If the EOQ for Material Y is 30,000 gallons, and the carrying cost per gallon per year is PO.25,
what is the total annual carrying cost for Material Y?
а. Р3,750
ь. Р7,500
c. P6,250
d. P10,000
3. A company annually consumes 10,000 units of Part C. The carrying cost of this part is P2 per
year and the ordering costs are P100. The company uses an order quantity of 500 units. If the
company operates 200 days per year, and the lead time for ordering Part C is 5 days, what is the
order point?
a. 250 units
b. 1,000 units
c. 500 units
d. 2,000 units
Pg. 2
Financial Management
4. Precio Jewels Corporation produces quality jewelry items for various retailers. For the coming
year, it has estimated it will consume 500 ounces of gold. Its carrying costs for a year are P2 per
ounce. No safety stock is maintained. If the EOQ is 100 ounces, what is the cost per order?
a. P40
b. Р20
P5
d. P25
с.
Transcribed Image Text:1– 2. Duo Corporation operates its factory 300 days per year. Its annual consumption of Material Y is 1,200,000 gallons. It carries a 10,000 gallon safety stock of Material Y and its lead time is 12 business days. 1. What is the order point for Material Y? a. 10,000 gallons b. 38,000 gallons c. 48,000 gallons d. 58,000 gallons 2. If the EOQ for Material Y is 30,000 gallons, and the carrying cost per gallon per year is PO.25, what is the total annual carrying cost for Material Y? а. Р3,750 ь. Р7,500 c. P6,250 d. P10,000 3. A company annually consumes 10,000 units of Part C. The carrying cost of this part is P2 per year and the ordering costs are P100. The company uses an order quantity of 500 units. If the company operates 200 days per year, and the lead time for ordering Part C is 5 days, what is the order point? a. 250 units b. 1,000 units c. 500 units d. 2,000 units Pg. 2 Financial Management 4. Precio Jewels Corporation produces quality jewelry items for various retailers. For the coming year, it has estimated it will consume 500 ounces of gold. Its carrying costs for a year are P2 per ounce. No safety stock is maintained. If the EOQ is 100 ounces, what is the cost per order? a. P40 b. Р20 P5 d. P25 с.
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