Andre candess manages an office supply store one

8) Andre Candess manages an office supply store. One product in the store is computer paper.
Andre knows that 10,000 boxes will be sold this year at a constant rate throughout the year. There
are 250 working days per year and the lead - time is 3 days. The cost of placing an order is $30,
while the holding cost is $15 per box per year. How many units should Andre order each time?
8)
A) 100
B) 400
C) 500
D) 200
E) None of the above
9) Daniel Trumpe has computed the EOQ for a product he sells to be 400 units. However, due to
recent events he has a cash flow problem. Therefore, he orders only 100 units each time he places
an order. Which of the following is true for this situation?
9) 10) Which of the following does not have an impact on EOQ? 10)
2

11) Andre Candess manages an office supply store. One product in the store is computer paper.
Andre knows that 10,000 boxes will be sold this year at a constant rate throughout the year. There
are 250 working days per year and the lead - time is 3 days. The cost of placing an order is $30,
while the holding cost is $15 per box per year. If Andre orders 500 boxes each time he orders from
his supplier, what would his total annual inventory cost be (holding cost plus ordering cost)?
11)
12) The annual demand for a product has been projected at 2,000 units. This demand is assumed to be
constant throughout the year. The ordering cost is $20 per order, and the holding cost is 20 percent
of the purchase cost. Currently, the purchase cost is $40 per unit. There are 250 working days per
year. Whenever an order is placed, it is known that the entire order will arrive on a truck in 6 days.
How many units should the company order each time an order is placed if the company wishes to
minimize total inventory cost?
12)
A) 250
B) 200
C) 500
D) 100
E) None of the above
13) Consider the material structure tree for item A below. If 10 units of A are needed, how many units
of E are needed?
13)