1. Maxmin Trading Company buys 1,000 pcs of chair per  month. The cost per chair is Php500 and ordering cost is Php400. The inventory  carrying cost is estimated at 10% of the price of the chair. Determine the EOQ.

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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1. Maxmin Trading Company buys 1,000 pcs of chair per 

month. The cost per chair is Php500 and ordering cost is Php400. The inventory 

carrying cost is estimated at 10% of the price of the chair. Determine the EOQ.

 

2. Maxmin Trading Company buys 1,000 pcs of chair per 

month. The cost per chair is Php500 and ordering cost is Php400. The inventory 

carrying cost is estimated at 10% of the price of the chair. Determine the total carrying cost.

 

3. Maxmin Trading Company buys 1,000 pcs of chair per 

month. The cost per chair is Php500 and ordering cost is Php400. The inventory 

carrying cost is estimated at 10% of the price of the chair. Determine the total ordering cost.

 

4. Maxmin Trading Company buys 1,000 pcs of chair per

month. The cost per chair is Php500 and ordering cost is Php400. The inventory

carrying cost is estimated at 10% of the price of the chair. Determine the number of orders required per year.

 

5. Minmax Processing Company has an average requirement of 5 boxes of its product per week. It has been estimated that the ordering cost of Php2.00 and that the carrying cost per unit of inventory is Php0.20. It observes a lead time of two weeks. Determine the EOQ.

 

6. Minmax Processing Company has an average requirement of 5 boxes of its product per week. It has been estimated that the ordering cost of Php2.00 and that the carrying cost per unit of inventory is Php0.20. It observes a lead time of two weeks. Determine the total annual inventory cost.

 

7. ABC Company has revenues of Php500,000, variable costs of Php350,000, and fixed cost of Php135,000. Compute for contribution margin percentage. 

 

8. ABC Company has revenues of Php500,000, variable costs of Php350,000, and fixed cost of Php135,000. Compute the total revenues needed to breakeven.

 

9. ABC Company has revenues of Php500,000, variable costs of Php350,000, and fixed cost of Php135,000. Compute for the total revenues needed to achieve a target operating income of Php45,000.

 

10. ABC Company has revenues of Php500,000, variable costs of Php350,000, and fixed cost of Php135,000. Compute total revenues needed to achieve a target net income of Php48,000, assuming the income tax rate is 40%

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