Inventory Management MCQs

A firm requires 12,800 units of a certain component which it buys @ Rs. 60 each. The cost of placing an order and following it up is Rs. 150 and annual storage charges work out to 10% of the cost of items. The number of units to be ordered to get maximum benefit to the firm are

April 27, 2022

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A firm requires 12,800 units of a certain component which it buys

Q. A firm requires 12,800 units of a certain component which it buys @ Rs. 60 each. The cost of placing an order and following it up is Rs. 150 and annual storage charges work out to 10% of the cost of items. The number of units to be ordered to get maximum benefit to the firm are

A. 1,000

B. 900

C. 800

D. 320

Answer: 800

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A firm requires 12,800 units of a certain component which it buys @ Rs. 60 each. The cost of placing an order and following it up is Rs. 150 and annual storage charges work out to 10% of the cost of items. The number of units to be ordered to get maximum benefit to the firm are

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A written comprehensive order, with specification, material code, and quantity sent to inform the purchasing department, of a need for material is called

A firm requires 12,800 units of a certain component which it buys @ Rs. 60 each. The cost of placing an order and following it up is Rs. 150 and annual storage charges work out to 10% of the cost of items. The number of units to be ordered to get maximum benefit to the firm are

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Which one of the following is the correct sequence of the purchase procedure of inventory?

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