Inventory

A company uses 3000 units of a part annually. The units are priced as given in the table below. It costs Rs. 150 to place an order. Carrying costs are 40 percent of the purchase price per unit on an annual basis. The min...

A company orders gears in conditions identical to those considered in the economic order quantity (EOQ) model in inventory control. The annual demand is 8000 gears, the cost per order is 300 rupees, and the holding cost...

The demand of a certain part is 1000 parts/year and its cost is Rs. 1000/part. The orders are placed based on the economic order quantity (EOQ). The cost of ordering is Rs. 100/order and the lead time for receiving the o...

Which one of the following is NOT a form of inventory?

The annual demand for an item is $$10,000$$ units. The unit cost is Rs. $$100$$ and inventory carrying charges are $$14.4\% $$ of the unit cost per annum. The cost of one procurement is Rs. $$2000.$$ The time between two...

Annual demand of a product is $$50,000$$ units and the ordering cost is Rs. $$7,000$$ per order. Considering the basic economic order quantity model, the economic order quantity is $$10,000$$ units. When the annual inven...

The annual requirement of rivets at a ship manufacturing company is $$2000$$ $$kg.$$ The rivets are supplied in units of 1 kg costing Rs. $$25$$ each. If it costs Rs. $$100$$ to place an order and the annual cost of carr...

A manufacturer can produce $$12000$$ bearings per day. The manufacturer received an order of $$8000$$ bearings per day from a customer. The cost of holding a bearing in stock is Rs. $$0.20$$ per month. Setup cost per pro...

Which one of the following is NOT a decision taken during the aggregate production planning stage?

The word Kanban is most appropriately associated with

Annual demand for window frames is $$10000.$$ Each frame costs Rs. $$200$$ and ordering cost is Rs. $$300$$ per order. Inventory holding cost is Rs. $$40$$ per frame per year. The supplier is willing to offer $$2\% $$ di...

A company uses $$2555$$ units of an item annually. Delivery lead time is $$8$$ days. The recorder point (in number of units) to achieve optimum inventory is

In a machine shop, pins of $$15mm$$ diameter are produced at a rate of $$1000$$ per month and the same is consumed at a rate of $$500$$ per month. The production and consumption continue simultaneously till the maximum i...

The maximum level of inventory of item is $$100$$ and it is achieved with infinite replenishment rate. The inventory becomes zero over one and half month due to consumption at a uniform rate. This cycle continuous throug...

A company has an annual demand of $$1000$$ units, ordering cost of Rs.$$100$$/order and carrying cost of Rs.$$100$$/unit –year. If the stock-out costs are estimated to be nearly Rs.$$400$$ each time the company runs out-...

Market demand for springs is $$8,00,000$$ per annum. A company purchases these springs in lots and sells them. The cost of making a purchase order is Rs.$$1,200.$$ The cost of storage of springs is Rs.$$120$$ per stored...

An item can be purchased for Rs.$$100.$$ The ordering cost is Rs.$$200$$ and the inventory carrying cost is $$10\% $$ of the item cost per annum. If the annual demand is 4000 units, the economic order quantity (in units)...

The forecasts for a product for the next three months are given as $$750,850$$ and $$1000$$ units. The number of regular time days and overtime days available are $$22,18,$$ $$22$$ and $$4,$$ $$4,5$$ respectively. With t...

A company places orders for supply of two items $$A$$ and $$B.$$ The order cost for each of the items is Rs.$$300$$ /order. The inventory carrying cost is $$18\% $$ of the unit price per year per unit. The unit prices of...

In computing Wilson’s economic lot size for an item, by mistake the demand rate estimate used was $$40\% $$ higher than the tree demand rate. Due to this error in the lot size computation, the total cost of setups plus i...

In inventory planning, extra inventory is unnecessarily carried to the end of the planning period when using one of the following lot size decision policies:

One of the following statements about $$PRS$$ (Periodic Reordering System) is not true. Identify.

Consider the following data for a product: Demand $$=1000$$ units/year Order cost $$=$$ Rs.$$40$$/order Holding cost $$ = 10\% $$ of the unit cost / unit-year Unit cost $$=$$ Rs.$$500$$ (a) What is the economic order qua...

If the demand for an item is doubled and the ordering cost halved, the economic order quantity

When the annual demand of a product is $$24000$$ units, the $$EOQ$$ (Economic Order Quantity) is $$2000$$ units. If the annual demand is $$48000$$ units the most appropriate $$EOQ$$ will be

In an ideal inventory control system, the economic lot size for a part is $$1000.$$ If the annual demand for the part is doubled, the new economic lot size required will be: