Inventory Management MCQs

Re-ordering level is calculated as

Which of the following is true for Inventory control?

If demand of one year is 25000 units, relevant ordering cost for each purchase order is $210 and carrying cost of one unit of stock is $25 then economic order quantity is

If purchase order lead time is 35 minutes and number of units sold per time is 400 units then reorder point will be

If required rate of return is 12% and per unit cost of units purchased is $35 then relevant opportunity cost of capital will be

Costing system which omits some of journal entries in accounting system is known as

Profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as

If demand in units is 18000, relevant ordering cost for each year is $150 and an order quantity is 1500 then annual relevant ordering cost would be

The Economic Order Quantity (EOQ) is calculated as

Re-ordering level is calculated as