Scribd
Upload
83 views1 page

Module 5 QUIZ

The document provides information to calculate order quantities and frequencies for two companies. For company ACE, the annual requirement is 78,000 units costing P4 each, with a 15% carrying cost and P90 ordering cost. The optimal order quantity is 9,000 units, requiring 9 orders per year, or one order every 6 weeks. For company MGS, the semiannual order is 24,000 units costing P20 each, with a 15% carrying cost and P12 ordering cost. The optimal order quantity is 12,000 units, requiring 2 orders per year.

Uploaded by

Shanaya Bulligan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
83 views1 page

Module 5 QUIZ

The document provides information to calculate order quantities and frequencies for two companies. For company ACE, the annual requirement is 78,000 units costing P4 each, with a 15% carrying cost and P90 ordering cost. The optimal order quantity is 9,000 units, requiring 9 orders per year, or one order every 6 weeks. For company MGS, the semiannual order is 24,000 units costing P20 each, with a 15% carrying cost and P12 ordering cost. The optimal order quantity is 12,000 units, requiring 2 orders per year.

Uploaded by

Shanaya Bulligan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

FMPMC 111 Module 5 QUIZ.

COMPUTE FOR THE FOLLOWING AND SHOW YOUR


SOLUTION. (25 points)

1. The ACE company estimates its annual requirement requirement is 78,000 units at a price of P4 per
unit. The carrying cost at 15% and its ordering cost at P90 per order.

Compute the following:

a) What is the most economical no. of units to order?


b) No. of orders to be placed in a year.
c) About how often will an order need to be placed?

2. MGS a manufacturing company placed an order of 24,000 units semiannually at a price of P20
per unit. Its carrying cost is 15% and the order cost is P12 per order.
Compute the following:

a) What is the most economical order quantity?


b) How many orders need to be placed?

You might also like