# The annual demand of an item is 4000 units. The ordering cost per order is 150, the inventory is 20%, the cost per unit is Rs.5 and the storage cost based on maximum inventory is 10 paise per unt per year. The economic Order Quantity will be

1.  10 units

2.  100 units

3.  1000units

4.  10000units

4

1000units

Explanation :
No Explanation available for this question

# Annual demand for a part is 12000 units production capacity of the plant is 2000 units per month, the setup cost is Rs.400 and holding cost per unit per month is Rs. 0.15. If optimum batch size will be 32.66, then maximum inventory level will be

1.  3266 units

2.  1360 units

3.  1633 units

4.  none of these

4

1633 units

Explanation :
No Explanation available for this question

# If EOQ is with in the range of the lowest discounted rate offered, then

1.  accept the discount offer and order for the minimum in the range

2.  reject the discount offer

3.  consider the total costs of the range of discounts before taking the discussion

4.  accept the discount offer and order at EOQ level

4

accept the discount offer and order at EOQ level

Explanation :
No Explanation available for this question

# In ABC analysis, the C items are those which represents

1.  small percentage of the total annual consumption value

2.  high percentage of the total annual consumption value

3.  small percentage of closing inventory value

4.  high percentage of closing inventory value

4

small percentage of the total annual consumption value

Explanation :
No Explanation available for this question

# The method of classification of items to be adopted for spare parts inventory is

1.  ABC analysis

2.  XYZ analysis

3.  VED analysis

4.  SDE analysis

5.  Rs. 600

6.  Rs. 620

7.  Rs. 640

8.  Rs. 660

8

Rs. 640

Explanation :
No Explanation available for this question

# The P-system of inventory control

1.  order quantity remains constant

2.  time between ordering remains constant

3.  Recorder point remains constant

4.  Production rate remains constant

4

time between ordering remains constant

Explanation :
No Explanation available for this question

# MRP indicates

1.  Materials Recording Point

2.  Materials Reordering Planing

3.  Materials Requirement Planning

4.  Material Requirement Point

5.  144

6.  148

7.  156

8.  186

8

144

Explanation :
No Explanation available for this question

# Item B requires four numbers of item C. Product P requires two numbers of items B and five number of item C. If five number of B and five number of item C. If five number of product P is to be manufactured , then numbersof item C require will be

1.  65

2.  55

3.  45

4.  35

5.  45 paise

6.  46 paise

7.  47 paise

8.  48 paise

8

48 paise

Explanation :
No Explanation available for this question

# For a given annual consumption, the minimum total inventory cost is proportional to square root of the product of

1.  ordering cost per order

2.  carrying cost per unit per year

3.  both (a) and (b)

4.  none of these

4

both (a) and (b)

Explanation :
No Explanation available for this question

# The mean and variance of consumption of an item are 100 and 16. The area under normal curve for z=2 is 0.95. The Recorder Point(ROP) for 95% service level will be

1.  92

2.  100

3.  108

4.  none of these

4