Calculate Re-order level from the following:
Consumption per week: 100-200 units
Delivery period: 14-28 days
(a) 5600 units
(b) 800 units
(c) 1400 units
(d) 200 units
Calculate EOQ (approx.) from the following details:
Annual Consumption: 24000 units
Ordering cost: Rs. 10 per order
Purchase price: Rs. 100 per unit
Carrying cost: 5%
(a) 310
(b) 400
(c) 290
(d) 300
Calculate the value of closing stock from the following according to FIFO method:
1st January : Opening balance: 50 units @ Rs. 4
Receipts:
5th January : 100 units @ Rs. 5
12th January : 200 units @ Rs. 4.50
Issues:
2nd January : 30 units
18th January : 150 units
(a) Rs. 765
(b) Rs. 805
(c) Rs. 786
(d) Rs. 700
Calculate the value of closing stock from the following according to LIFO method:
1st January : Opening balance: 50 units @ Rs. 4
Receipts:
5th January : 100 units @ Rs. 5
12th January : 200 units @ Rs. 4.50
Issues:
2nd January : 30 units
18th January : 150 units
(a) Rs. 765
(b) Rs. 805
(c) Rs. 786
(d) Rs. 700
Calculate re-order level from the following:
Safety stock: 1000 units
Consumption per week: 500 units
It takes 12 weeks to reach material from the date of ordering.
(a) 1000 units
(b) 6000 units
(c) 3000 units
(d) 7000 units
From the following information, calculate the extra cost of material by following EOQ:
Annual consumption: = 45000 units
Ordering cost per order: = Rs. 10
Carrying cost per unit per annum: = Rs. 10
Purchase price per unit = Rs. 50
Re-order quantity at present = 45000 units
There is discount of 10% per unit in case of purchase of 45000 units in bulk.
(a) No saving
(b) Rs. 2,00,000
(c) Rs. 2,22,010
(d) Rs. 2,990
P Ltd. provides you the following information for the year 2017-18 :
Balance as on 1st April, 2017 : 1,240
Materials purchased : 4,801
Material issued to :
— Jobs: 4,774
— Maintenance works : 412
— Administration offices: 34
— Selling department : 72
What will be the closing balance of material control account as on 31st March, 2018 ?
(a) 749 units
(b) 794 units
(c) 855 units
(d) 889 units
If EOQ is 200 units, ordering cost is Rs.20 per order and total purchases is 4,000 units. The carrying cost per unit will be :
(a) Rs. 4
(b) Rs. 6
(c) Rs. 8
(d) Rs. 2
Consider the following information:
1. Minimum, average and maximum consumption per week = 400 kg, 600 kg and 750 kg
2. Minimum, average and maximum lead time = 3 weeks, 5 weeks and 7 weeks
Which one of the following is the re-order level?
(a) 5000 kg
(b) 6800 kg
(c) 5250 kg
(d) 6000 kg
In manufacturing its products Z, a company uses two types of Raw Materials A and B respect of which the following information is supplied:
One unit Z requires 10 Kg. of A and 4 Kg of B Materials . Price per kg. of A Materials is Rs. 10 and that of B is Rs. 20. Re-order quantity of A and B Materials are 10,000 kg. and 5,000 kg. Re-order level of A and B Materials are 8,000 kg. and 4,750 kg. respectively. Weekly production varies from 175 units to 225 units average 200 units. Delivery period of A Materials is 1 to 3 weeks and B Materials is 3 to 5 weeks.
Compute:
(i) Minimum Stock Level of A
(ii) Maximum Stock Level of B
(a) 4000 kg ; 7650 Kg
(b) 7650 kg ; 4000 Kg
(c) 5250 kg ; 7650 Kg
(d) 4000 kg ; 6000 kg
A firm consumes 90000 units of a certain item of raw material in its production process annually. It costs Rs. 3 per unit, the cost per purchase order is Rs. 300 and the inventory carrying cost is 20% per year. What is the EOQ?
(a) 9470 units
(b) 9487 units
(c) 9480 units
(d) 9840 units UGC-NET Commerce Paper II (June 2019)
A firm’s inventory planning period is one year. Its inventory requirement for this period is 400 units. Assume that its acquisition costs are Rs. 50 per order. The carrying costs are expected to be Rs. 1 per unit per year for an item. What is EOQ?
(a) 800 units
(b) 200 units
(c) 100 units
(d) None of the above UGC-NET Management Paper III (June 2013)