Inventory Management MCQs

A company manufactures 5,000 units of a product per month. The cost of placing an order is ₹ 100. The purchase price of the raw material is ₹ 10 per kg. The average consumption of raw material is 275 kg per week. The carrying cost of inventory is 20% per annum. The economic order quantity is___

April 27, 2022

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A company manufactures 5,000 units of a product per month

Q. A company manufactures 5,000 units of a product per month. The cost of placing an order is ₹ 100. The purchase price of the raw material is ₹ 10 per kg. The average consumption of raw material is 275 kg per week. The carrying cost of inventory is 20% per annum. The economic order quantity is___

A. 1,196 kg

B. 707 kg

C. 2,449 kg

D. 2,400 kg

Answer: 1,196 kg

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A company manufactures 5,000 units of a product per month. The cost of placing an order is ₹ 100. The purchase price of the raw material is ₹ 10 per kg. The average consumption of raw material is 275 kg per week. The carrying cost of inventory is 20% per annum. The economic order quantity is___

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The method of regular physical verification of material throughout the year is known as

A company manufactures 5,000 units of a product per month. The cost of placing an order is ₹ 100. The purchase price of the raw material is ₹ 10 per kg. The average consumption of raw material is 275 kg per week. The carrying cost of inventory is 20% per annum. The economic order quantity is___

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If the minimum stock level and average stock level of raw material ‘A’ are 4,000 & 9,000 emits respectively, what is its reorder quantity

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