A company determines its order quantity for a raw material by using the Economic Order Quantity (EOQ) model.

What would be the effects on the EOQ and the total annual holding cost of a decrease in the cost of ordering a batch of raw material?

G Co makes the following purchases and sales.

At 31 March which of the following closing inventory valuations using LIFO is correct?

The material stores control account for a company for March looks like this:

Material stores control account

Which of the following statements are correct?

1. Issues of direct materials during March were $18,000
2. Issues of direct materials during March were $40,000
3. Issues of indirect materials during March were $12,000
4. Purchases of materials during March were $49,000

5.5 The annual demand for an item of inventory is 2,500 units. The cost of placing an order is $80 and the cost of holding an item in stock for one year is $15.

What is the economic order quantity, to the nearest unit?

_______ units

The demand for a product is 12,500 units for a three month Each unit of product has a purchase price of $15 and ordering costs are $20 per order placed.

The annual holding cost of one unit of product is 10% of its purchase price.

What is the Economic Order Quantity (to the nearest unit)?

For a particular component, the re-order quantity is 6,000 units and the average inventory holding is 3,400 units.

Using the drop down list, select the level of safety inventory (in whole units).

A domestic appliance retailer with multiple outlets sells a popular toaster known as the Autocrisp 2000, for which the following information is available:

Based on the data above, at what level of inventory would a replenishment order be issued? _______ units

A domestic appliance retailer with multiple outlets sells a popular toaster known as the Autocrisp 2000, for which the following information is available:

Based on the data above, what is the maximum inventory level?

There are 27,500 units of Part Number X35 on order with the suppliers and 16,250 units outstanding on existing customers' orders.

If the free inventory is 13,000 units, what is the physical inventory?

_______ units

5.13 A company wishes to minimise its inventory costs. Order costs are $10 per order and holding costs are
$0.10 per unit per month. Fall Co estimates annual demand to be 5,400 units.

What is the economic order quantity (to the nearest whole unit)?

______ units

Data relating to a particular stores item are as follows:

What is the reorder level (in units) which avoids stockouts (running out of inventory)?

What is the economic batch quantity used to establish?

Optimal

Which of the following functions are fulfilled by a goods received note (GRN)?

1. Provides information to update the inventory records on receipt of goods
2. Provides information to check the quantity on the supplier's invoice
3. Provides information to check the price on the supplier's invoice

Which of the following is correct with regard to inventories?

1. Stock-outs arise when too little inventory is held.
2. Safety inventories are the level of units maintained in case there is unexpected demand.
3. A re-order level can be established by looking at the maximum usage and the maximum lead-time

A wholesaler had opening inventory of 300 units of product Emm valued at $25 per unit at the beginning of January. The following receipts and sales were recorded during January.

The purchase cost of receipts was $25.75 per unit.

Using a weighted average method of valuation, calculate the value of closing inventory at the end of January.

G Co makes the following purchases and sales.

At 31 March which of the following closing inventory valuations using FIFO is correct?

A company uses an item of inventory as follows.

What is the minimum total cost assuming a discount of 2% applies to the purchase price and to holding costs on orders of 300 and over?

A manufacturing company uses 25,000 components at an even rate during a Each order placed with the supplier of the components is for 2,000 components, which is the economic order quantity. The company holds a buffer inventory of 500 components. The annual cost of holding one component in inventory is $2.

What is the total annual cost of holding inventory of the component?

Where on the graph would you read off the value for the economic order quantity?

The following data relates to component L512:

What is the economic order quantity (to the nearest whole unit)?

The following data relate to inventory item A452:

What is the maximum inventory level?

ACB Co gradually receives its re-supply of inventory at a rate of 10,000 units a week. Other information is available as follows.

What is the economic production run?