Safety stock order point a 750 1350 b 600 750 c 600

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Safety Stock Order Point a. 750 1,350 b. 600 750 c. 600 350 d. 750 600 SS = (7,200 / 240) X (45-20) = 750 OP= 20 (7,200 / 240) + 750 = 1,350
14. Venus Manufacturing Company uses 1,000 units of Chip annually in its production. Order costs consist of P10 for placing a long-distance call to make the order and P40 for delivering the order by truck to the company warehouse. Each Chip costs P100 and the carrying costs are estimated at 15.625% of the inventory cost. What is the economic order quantity for Chip?
15. Using the date in No. 14, what is the total order cost?
c. P525 d. P650 Order Cost = RU X CO EOQ =1,000 x P50 80 = 50,000 80 = P625 16. Using the data in No. 14, what is the carrying cost for the year?
17. Pluto Company has developed the following data to assist in controlling one of its material inventory items: Economic Order Quantity 1,000 liters Average Daily use 100 liters Maximum Daily Use 120 liters Working days per year 250 days Safety Stock 140 liters Cost of Carrying Inventory P1.00 per liter per year
Lead time 7 working days What is the reorder point? a. 840 liters b. 800 liters c. 900 liters d. 830 liters Safety Stock + (Average daily use x Lead Time ) 140 + (100 x 7 days) = 840 liters
18. Using the data in No. 17, what is the average inventory?
19. Using the data in No. 17, what is the maximum inventory assuming normal lead time and usage?

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