EOQ QUIZ (3)

BBA 4

1. Which of the following is not an inventory?

a. Machines
b. Raw material
c. Finished products
d. Consumable tools

2. The cost of insurance and taxes are included in

a. Cost of ordering
b. Cost of purchase
c. Inventory carrying cost
d. Demand

3. The time period between placing an order its receipt in stock is known as

a. Lead time
b. Carrying time
c. Shortage time
d. Over time

4. The order cost per order of an inventory is Rs. 400 with an annual carrying cost of
Rs. 10 per unit. The Economic Order Quantity (EOQ) for an annual demand of
2000 units is

a. 400
b. 440
c. 480
d. 500

5. If EOQ = 600 units, order costs are $60 per order, and carrying costs are $ 2 per
 unit, what is the demand in units?

a. 5000 units.
b. 5500 units.
c. 6500 units.
d. 6000 units.

6. If EOQ = 200 units, cost of material per unit $ 40, order costs are $50 per order, and
demand 1600 units, what is the carrying cost% per unit?

a. $2%
b. $10%
c. $15%
d. $25%

7. From the figures given below, calculate Economic Order Quantity (EOQ) and Total cost
at EOQ?

Total consumption of material per year         10,000 kgs               

Buying cost per order Rs. 50
Unit cost of material                                      Rs. 2 per kg           
Carrying and storage cost 8%

EOQ

a. 3000
b. 3500
c. 2500
d. 4000

Total Inventory Cost

a. 20,400
b. 25,000
c. 22,500
d. 26,000