1. Krissy operates its factory 300 days per year. Itsannual used of Material Y is 300,000 gallons. It carries a2,500 gallon safety stock of material and its lead time is3 business days.What is the order point for Material Y?2. The EOQ for Material is 7,500 gallons, and thecarrying cost per gallon per year is P.25. What is the totalannual carrying cost for Material?3. Peter's order quantity for tocino is 5,000 kilos. Petermaintains a safety stock of Tocino at 500 kilos, and itsorder point is 1,500 kilos.What is the lead time, assuming daily usage is 50kilos?4. Peter's order quantity for tocino is 5,000 kilos. Petermaintains a safety stock of Tocino at 500 kilos, and itsorder point is 1,500 kilos.What would be the total annual carrying costs,assuming the carrying cost per unit is P.805. The following are data of materials inventory for theyear 2020 of Mars Corp:Number of pounds requiredannuallyCost of placing an orderAnnual carrying cost per pound of144,000P180materialsP36What is the EOQ?

As per the honor code, We’ll answer the first question since the exact one wasn’t specified. Please…

1. Krissy operates its factory 300 days per year. Its annual used of Material Y is 300,000 gallons. It carries a 2,500 gallon safety stock of material and its lead time is 3 business days. What is the order point for Material Y?

1. Krissy operates its factory 300 days per year. Its annual used of Material Y is 300,000 gallons. It carries a 2,500 gallon safety stock of material and its lead time is 3 business days. What is the order point for Material Y?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

1. Krissy operates its factory 300 days per year. Its
annual used of Material Y is 300,000 gallons. It carries a
2,500 gallon safety stock of material and its lead time is
3 business days.
What is the order point for Material Y?
2. The EOQ for Material is 7,500 gallons, and the
carrying cost per gallon per year is P.25. What is the total
annual carrying cost for Material?
3. Peter's order quantity for tocino is 5,000 kilos. Peter
maintains a safety stock of Tocino at 500 kilos, and its
order point is 1,500 kilos.
What is the lead time, assuming daily usage is 50
kilos?
4. Peter's order quantity for tocino is 5,000 kilos. Peter
maintains a safety stock of Tocino at 500 kilos, and its
order point is 1,500 kilos.
What would be the total annual carrying costs,
assuming the carrying cost per unit is P.80
5. The following are data of materials inventory for the
year 2020 of Mars Corp:
Number of pounds required
annually
Cost of placing an order
Annual carrying cost per pound of
144,000
P180
materials
P36
What is the EOQ?

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