Sam Company is a retailer of real wood flooring. It buys and sells 20,000 packs of...

 

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Sam Company is a retailer of real wood flooring. It buys and sells 20,000 packs of flooring each year from its supplier Frank Company. The real wood flooring from Frank Company costs OMR 35 per pack. There is an order processing charge of OMR 150 per order, irrespective of the number of packs ordered, and Frank Company takes 10 days to deliver the wood flooring. The average cost of holding one pack of real wood flooring for one year is OMR 9. Now, Sam Company has another option from Dona Company. A new supplier of real wood flooring, Dona Company, has offered Sam Company wood flooring on slightly different terms. Dona Company guarantees that its wood will never arrive damaged since it uses special packaging designed for maximum protection. It charges OMR 34.95 per pack for the flooring. There is an order processing charge of OMR 160 per order, irrespective of the number of packs ordered, and Dona Company takes 7 days to deliver the goods. The average cost of holding one pack of Dona Company real wood flooring for one year is OMR 12. This is because of special packaging takes up additional storage space. How many orders need to be placed in a year from Dona Company to get the optimal cost? a. 39 orders b. 38 orders c. 125 orders d. 28 orders What will be the total cost of holding and ordering the wood flooring for one year under Dona company arrangements? a. RO 10,460 b. RO 9,972 c. RO 10,620 d. RO 8,860 The technique used in managing inventory by the classification of it depending on the necessity of spares for smooth running of the production and done done by the technical staff called: O a. Economic order quantity O b. Perpetual inventory system c. ABC analysis O d. VED analysis If the company ultimate purpose in managing inventory is to reduce time and cost, which technique it should use: a. VED analysis O b. ABC analysis c. Economic order quantity O d. Just in time control system Total cost of the inventory is calculated as: a. None of the given options b. Total cost of Holding + Total cost of Ordering + Purchasing cost c. Total cost of holding + Total cost of ordering d. Purchase of inverntory Sam Company is a retailer of real wood flooring. It buys and sells 20,000 packs of flooring each year from its supplier Frank Company. The real wood flooring from Frank Company costs OMR 35 per pack. There is an order processing charge of OMR 150 per order, irrespective of the number of packs ordered, and Frank Company takes 10 days to deliver the wood flooring. The average cost of holding one pack of real wood flooring for one year is OMR 9. Now, Sam Company has another option from Dona Company. A new supplier of real wood flooring, Dona Company, has offered Sam Company wood flooring on slightly different terms. Dona Company guarantees that its wood will never arrive damaged since it uses special packaging designed for maximum protection. It charges OMR 34.95 per pack for the flooring. There is an order processing charge of OMR 160 per order, irrespective of the number of packs ordered, and Dona Company takes 7 days to deliver the goods. The average cost of holding one pack of Dona Company real wood flooring for one year is OMR 12. This is because of special packaging takes up additional storage space. How many orders need to be placed in a year from Dona Company to get the optimal cost? a. 39 orders b. 38 orders c. 125 orders d. 28 orders What will be the total cost of holding and ordering the wood flooring for one year under Dona company arrangements? a. RO 10,460 b. RO 9,972 c. RO 10,620 d. RO 8,860 The technique used in managing inventory by the classification of it depending on the necessity of spares for smooth running of the production and done done by the technical staff called: O a. Economic order quantity O b. Perpetual inventory system c. ABC analysis O d. VED analysis If the company ultimate purpose in managing inventory is to reduce time and cost, which technique it should use: a. VED analysis O b. ABC analysis c. Economic order quantity O d. Just in time control system Total cost of the inventory is calculated as: a. None of the given options b. Total cost of Holding + Total cost of Ordering + Purchasing cost c. Total cost of holding + Total cost of ordering d. Purchase of inverntory

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