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    05 - Quiz - 1 LOgistics

    Uploaded by

    Robin Lusabio
    This document contains a multiple choice quiz on inventory management concepts and a problem-solving question calculating optimal order quantity. The quiz assessed dependent demand, raw materials, finished goods, ordering costs, and setup costs. It also listed components of holding costs. The problem asked to calculate economic order quantity, number of orders per year, ordering cost, carrying cost, and total inventory cost for a company ordering screws based on chair production volume and given ordering and carrying costs. The provided solution showed the calculations for each item.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    05 - Quiz - 1 LOgistics

    Uploaded by

    Robin Lusabio
    72 views2 pages
    This document contains a multiple choice quiz on inventory management concepts and a problem-solving question calculating optimal order quantity. The quiz assessed dependent demand, raw materials, finished goods, ordering costs, and setup costs. It also listed components of holding costs. The problem asked to calculate economic order quantity, number of orders per year, ordering cost, carrying cost, and total inventory cost for a company ordering screws based on chair production volume and given ordering and carrying costs. The provided solution showed the calculations for each item.

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    long quiz

    Original Title

    05_Quiz_1 LOgistics

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    This document contains a multiple choice quiz on inventory management concepts and a problem-solving question calculating optimal order quantity. The quiz assessed dependent demand, raw materials, finished goods, ordering costs, and setup costs. It also listed components of holding costs. The problem asked to calculate economic order quantity, number of orders per year, ordering cost, carrying cost, and total inventory cost for a company ordering screws based on chair production volume and given ordering and carrying costs. The provided solution showed the calculations for each item.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    72 views2 pages

    05 - Quiz - 1 LOgistics

    Uploaded by

    Robin Lusabio
    This document contains a multiple choice quiz on inventory management concepts and a problem-solving question calculating optimal order quantity. The quiz assessed dependent demand, raw materials, finished goods, ordering costs, and setup costs. It also listed components of holding costs. The problem asked to calculate economic order quantity, number of orders per year, ordering cost, carrying cost, and total inventory cost for a company ordering screws based on chair production volume and given ordering and carrying costs. The provided solution showed the calculations for each item.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    NAME:LUSABIO JR, ROBIN A.

    DATE: 01/04/2023 SCORE:

    I. MULTIPLE CHOICE (5 items x 2 points)


    Encircle the letter of the correct answer.

    1. This category of inventory is represented by an item whose demand is linked directly to the
    demand or production level of another item.
    A. Dependent demand

    2. These inventories include resources a business uses to produce its own goods.

    D. Raw materials and component

    3. These inventories include products that are ready to be shipped directly to customers or
    retailers.
    C. Finished goods

    4. These costs include fixed and variable expenses associated with purchasing additional
    inventory.
    B.Ordering

    5. These costs are associated with changing production system or arrangement.


    A.Setup

    II. ENUMERATION (4 items x 2 points)


    Identify the components of holding costs, in any order.

    1. Capital or Opportunity Cost


    2. Physical Space Occupied By The Inventory
    3. Handling Of Inventory
    4. Pilferage And Scrap

    III. PROBLEM-SOLVING
    ABC Furniture desires to determine the optimal order quantity of screws used in the production of
    their wooden chairs. The annual demand for chairs is 150,000 units. The cost to place an order of
    screws is P1,500 and the carrying cost is P2 per unit.

    Requirements (5 items x 5 points):


    A. Economic Order Quantity (EOQ)
    B. No. of orders per year
    C. Ordering cost
    D. Carrying cost
    E. Total Inventory cost
    SOLUTION:

    1. EOQ = 2( 2DS / H )

    = 2(2(150,000 X 1,500) / 2)

    =2(450,000,000 / 2)

    =2(225,000,000)

    EOQ= 15,000

    2. No. of order per year = annual demand / EOQ

    = 150,000 / 15,000

    Order per year = 10

    3. Ordering Cost = FOC x No. Of Order per year

    = 1,500 x 10

    Ordering Cost = P15,000.00

    4. Carrying Cost = Carrying Cost x EOQ/2

    = 2 x 15,000 / 2
    = 2 x 7,500

    Carrying Cost = P15,000.00

    5. Total Inventory Cost = Ordering Cost + Carrying Cost

    = P15,000 + P15,000

    Total Inventory Cost = P30,000.00

    Rubric for grading:


    CRITERIA POINT
    S
    Complete solution with correct answer 5
    Last two (2) major steps of the solution are 4
    incorrect
    Half of the solution is correct 3
    First two (2) major steps of the solution are 2
    correct
    First major step of the solution is correct 1

    05 Quiz 1 *Property of STI


    02Page 1 of 1

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