Question 7 The annual requirement for materials AB of Amor Company total 21,000 units. The cost to make an order is P50 and the carrying cost is 8% per annum. The price of material AB is P60 per unit. The Economic Order Quantity must be ? 187 units O 468 units 794 units O 662 units
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- QUESTION 6 Eric Clothing Limited’s annual demand for materials X is 50 000 units, and the ordering cost is P10 000 per order and each unit costs P3 000. The estimated cost of holding unit of stock is 15% of the purchase cost.Required:a. Calculate the economic order quantity (EOQ) and; b. Calculate the total annual costs of material X.2.3 REQUIRED Calculate the annual economic order quantity from the information provided below. INFORMATION The following details have been supplied by Yolo Limited for one of its products: Monthly sales 6 000 units Carrying costs as a percentage of the unit purchase price 10% Purchase price per unit R50 Cost of placing an order R20PROBLEMS Problem 1 The Norman Company predicts that 64,000 units of material will be used during the year. The materials are expected to cost P20.00 per unit. It is anticipated that it will cost P 40.00 to place each order. The annual carrying cost is P 2.00 . Determine: a. The most economical order quantity b. The total cost of ordering and carrying at the EOQ point
- Problem 2 Abner Company has an annual demand of 13,000 urits of Material A. The cost per unit is P14. The order cost is P200 per order, and the annual inventory carrying cost per unit is P5.20. Assume that the units will be required evenly throughout the year. Required: Compute for the following: a. Economic order quantity b. Number of orders in a year. c. Average inventory based on economic order quantity. d. Total carrying cost and total ordering costs at economic order quantity.•The material DX is used uniformly throughout the year. The data about annual requirement, ordering cost and holding cost of this material is given below: • Annual requirement: 3,400 units • Ordering cost: OMR 15 per order • Holding cost: OMR 0.70 per unit •What will be the economic order quantity (EOQ) of material DX a. 3817.254 b. 318.72 c. 381.72 d. 3187.254 ....... Answer the Question based the data given below Opening Stock 25000 Closing Stock 35000 Net purchases 130000 Manufacturing expenses 30000 What will be the inventory turnover ratio? a. 6 b. 5 c. 4.5 d. 4Exercise 22: The annual demand for an item is 3,200 units. The units cost is P6 and inventory carrying charges is 25% p.a. If the cost of one procurement is P150, determine: (a) E.O.Q (b) No. of orders per year (c) Time between two consecutive orders.
- Following information relating to a type of raw material is available: Annual demand 2,400 units, Unit price OMR. 2.400, Ordering cost per order OMR.4.000, Storage cost 2% per annum, Interest rate 10% per annum. Calculate Economic Order Quantity. a. 258 units • b. None c. 852 units d. 528 unitsCase 2Al Ahlia detergent company purchased 4500 units of raw material for annual usage. Thepurchase price per unit RO 100 and annual carrying cost is 15%. The cost of placing an order isRO. 1200. Calculate a. Economic Order Quantityb. No of orders per yearc. Economic Order FrequencyQUESTION 4 An organisation manufactures a single product. The following information with regard to the raw material needed in the production process is supplied to you: Normal delivery time: 2.5 weeksMaximum delivery time: 3.5 weeksNormal usage: 52 000 units per yearPurchase price per unit: R8.50Cost of placing an order: R18.00Interest rate: 2% per yearStoring cost per unit: R2.50 Required: Calculate the re-order point if the organisation has a policy to keep safety stock. Calculate the safety stock that should be kept by the organisation.
- QUESTION 4 An organisation manufactures a single product. The following information with regard to the raw material needed in the production process is supplied to you: Normal delivery time: 2.5 weeksMaximum delivery time: 3.5 weeksNormal usage: 52 000 units per yearPurchase price per unit: R8.50Cost of placing an order: R18.00Interest rate: 2% per yearStoring cost per unit: R2.50 Required: Calculate the EOQ. Calculate the re-order point if the organisation does not keep safety stock.UrUCr quantny (EUQ). V C.S. 50 10% C in respect of which the following apply: Raw materials Minimum level Usage Order level Re-order Delivery period (weeks) Price per unit of product kg quantity per kg Re kg 1 to 3 3 to 5 2 to 4 8,000 4,750 10 10,000 0.10 4. 5.000 10.000 0.30 2,000 C. 0.15 the quantities of the following to be: (a) Minimum stock of A, (b) Maximum stock level of B, (c) Re-order level of C, and (d) Average stock level of A ? (B.Com., Madras; C.A. InterQUESTION 3 Aldarees Company sells a product for SR 1,000 per unit. Variable costs are SR 600 per unit, fixed costs are SR 64,000. The company expects to sell 850 units in September. Calculate required units to earn target profit of SR 268,800 per month. OA 416 units OR 50 units C 832 units OD. 160 units QUESTION 4