Question : 31) How many deliveries will be required at the economic-order quantity : 1196174

 

31)

How many deliveries will be required at the economic-order quantity level? 31)

______ A)

36.5 deliveries B)

41.6 deliveries C)

17.7 deliveries D)

52.3 deliveries E)

18.9 deliveries

32)

The level of inventory which should trigger a new order is called 32)

______ A)

the customer demand level. B)

the reorder point. C)

the supply equal demand level. D)

the stockout level. E)

the inventory level.

33)

Disc Company sells 400 discs per week. Purchase-order lead time is 3 weeks and the economic-order quantity is 900 units. What is the reorder point? 33)

______ A)

4,500 units B)

1,200 units C)

3,500 units D)

5,600 units E)

950 units

34)

Owen-King Company sells optical equipment. Lens Company manufactures special glass lens. Owen-King Company orders 5,200 lens per year, 100 per week at $20 per lens. Lens Company covers all shipping costs. Owen-King Company earns 30% on its cash investments. The purchase-order lead time is 2.5 weeks. Owen-King Company sells 125 lens per week. The following data is available:

 

Relevant ordering costs per purchase order

$21.25

Relevant insurance, materials handling, breakage,

and so on, per year

$ 2.50

 

What is the economic-order quantity for Owen-King Company?

34)

______ A)

161 lens B)

92 lens C)

325 lens D)

210 lens E)

297 lens

35)

Owen-King Company sells optical equipment. Lens Company manufactures special glass lens. Owen-King Company orders 5,200 lens per year, 100 per week at $20 per lens. Lens Company covers all shipping costs. Owen-King Company earns 30% on its cash investments. The purchase-order lead time is 2.5 weeks. Owen-King Company sells 125 lens per week. The following data is available:

 

Relevant ordering costs per purchase order

$21.25

Relevant insurance, materials handling, breakage,

and so on, per year$ 2.50

 

What is the reorder point? 35)

______ A)

220.5 lens B)

397.5 lens C)

415.5 lens D)

312.5 lens E)

561.9 lens

36)

The following information has been gathered for Product A:

 

Annual demand400

units

Purchase price per unit$300

Orders per year10

Average daily demand1.6 units

Lead time in days10

Cost of placing an order$40

Relevant insurance, handling. etc costs$8

Required return10%

 

What are the annual carrying costs assuming each order was made at the EOQ amount? 36)

______ A)

$1,520 B)

$16,000 C)

$80 D)

$12,800 E)

$400

37)

The following information has been gathered for Product A:

 

Annual demand400 units

Orders per year10

Average daily demand1.6 units

Lead time in days10

Cost of placing an order$40

 

What is the economic order quantity assuming each order was made at the EOQ amount? 37)

______ A)

9 units B)

46 units C)

10 units D)

40 units E)

20 units

38)

The following information has been gathered for Product A:

 

Annual demand400 units

Orders per year10

Average daily demand1.6 units

Lead time in days10

Cost of placing an order$40

 

What is the reorder point? 38)

______ A)

16 B)

92 C)

8 D)

80 E)

64

39)

The inventory that is held to offset unexpected increases in demand or lead time and unexpected unavailability of stock from suppliers is primarily known as 39)

______ A)

safety stock. B)

inventory stock. C)

obsolete stock. D)

surplus stock. E)

over-supply stock.

40)

Which of the following statements is TRUE? 40)

______ A)

The safety stock is the amount of stock that must be on hand to cover sales during lead time. B)

The safety stock is the minimum level of inventory that must remain at the customers. C)

The reorder point is the minimum level of inventory allowed during a particular period. D)

The reorder point is the point at which the amount of inventory on hand equals the amount needed to cover sales during the lead time. E)

The safety stock is the minimum level of inventory that must remain on hand.