1. The average inventory of the company was 4,000 units. The company's current safety stock level is 2,000 units. The purchase cost of the inventory is P50 per unit and the carrying cost is 20% of the inventory cost. The ordering cost per unit is P20. What is the average daily usage of the company?
2. Botak Manufacturing Corporation estimates that it will consume 400,000 units of Part 101 in the coming year. The ordering cost for this unit is 3.20. Botak wants to maintain a safety stock of 1,000 units and its factory operates 200 days per year. What is the order point if the lead time is 2 days?
3. Botak Manufacturing Corporation estimates that it will consume 400,000 units of Part 101 in the coming year. What would be the carrying costs per unit if the EOQ model indicates that it is optimal to place exactly 50 orders for the upcoming year?
4. Minimum daily use 300 units

Maximum daily use 460 units

Normal daily Use 400 units

Working days per year 250 days

Lead time in working days 10 days

Safety stock ? units

Cost of placing an order P80

EOQ 4,000 units

a. How much is the normal maximum inventory?

b. How much is the safety stock of the company?

c. How much is the order point of the company?

Answer rating: 100% (QA)

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