Stock Level | EOQ | Exam Based Problems and Answers of Stock Level and EOQ

 

 

Exam Based Problems and Answers of Stock Level and EOQ

Exam based problems and answers of Stock Level and EOQ are the BEST collection for sure shot success in the examination.

These questions are based on board exam.

These questions are set in easy to difficult series.

 

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PROBLEMS  AND  ANSWERS  OF  EOQ  AND  STOCK LLEVEL

 

Economic Order Quantity

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 1

The following information is given to you:

Annual requirement	20,000 units
Price per unit	Rs 4
Average cost per order	Rs 50
Inventory carrying cost excluding insurance	1/4th of unit price
Insurance charge per unit	Re 1

Required: (a) Economic order quantity; (b) EOQ order

[Answer: (a) EOQ = 1,000 units; (b) 20 times] *C = Rs 2

 

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 2

The following information were given by CL Company:

Yearly requirement	25,000 kgs
Procurement cost (unit cost)	Rs 10 per kg
Cost per order	Rs 100
Salary to storekeeper per unit	Rs 2
Rent of warehouse per unit	Rs 3

Required: (a) Economic order quantity; (b) EOQ cost

[Answer: EOQ = 1,000 units; (b) EOQ cost = Rs 5,000] *C = Rs 5

 

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 3

Materials need details are:

Economic order quantity	400 units
Ordering cost	Rs 10 per order
Carrying cost per unit	Rs 2

Required: (a) Annual requirement (A); (b) EOQ order

[Answer: (a) A = 16,000 units; (b) EOQ order = 40 times]

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 4

The firm provides the following extracted information:

Annual requirement	720 units
Economic order quantity	60 units
Carrying cost per unit	Rs 4

Required: Ordering cost per order (O); (b) EOQ cost

[Answer: (a) O = Rs 10; (b) EOQ Cost = Rs 240]

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 5

The material purchase details are:

Annual requirement	40,000 units
Economic order quantity	2,000 units
Ordering cost per order	Rs 200

Required: Carrying cost per unit (C); (b) EOQ order

[Answer: (a) C = Rs 4; (b) 20 times]

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 6

The details for material purchase of a company are:

Annual requirement	2,000 units
Tender price per order	Rs 20
Holding cost per unit	Rs 2
Economic order quantity	200 units

Required: (a) Total cost of EOQ; (b) Number of order of EOQ

[Answer: (a) Total cost = Rs 400; (b) Order = 10 times]

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 7

The details of material purchase by a firm are:

Annual requirement	18,000 units
Price per unit	Rs 27
Cost per order	Rs 150
Keeping cost per unit	Rs 5.40

Required: (1) Economic order quantity; (2) No. of orders per year

[Answer: EOQ = 1,000 units; No. of order = 18]

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 8

A firm provides the following information:

Annual requirement	30,000 units
Carriage inward order	Rs 300
Cost price per unit	Rs 8
Godown rent per unit	25% of inventory value

Required: (a) Economic order quantity; (b) Number of orders  

[Answer: (a) EOQ = 3,000 units; (b) EOQ order = 10 times]

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 9

the details for material purchase of a firm are:

Annual requirement	10,000 units
Carriage inward per order	Rs 150
Insurance of goods-in-transit	Rs 50
Materials cost per unit	Rs 20
Rent of godown per unit	Rs 2
Interest on capital blocking on stock per unit	Re 1
Salary to storekeeper per unit	Re 1

Required: (a) Economic order quantity; (b) Number of orders per year

[Answer: EOQ = 1,000 units; EOQ order = 10 times]

*O = Rs 200; C = Rs 4

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 10

Following information are given in respect of a materials:

Annual requirement	50,000 kg
Cost per kg	Rs 20
Cost per order	Rs 250
Carrying cost	20% of material cost
Days in year	360 days

Required: (a) Economic order quantity; (b) Average period between the orders

 [Answer: (a) EOQ = 2,500 units; (b) 18 days]

*AP = (EOQ x Days) ÷ A

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 11

The following information is available in respect of a material:

Annual requirement	25,000 units
Economic order quantity	5,000 units
Cost per unit	Rs 2
Days in year	360 days

Required: (a) EOQ order (b) Length of inventory circle 

 [Answer: (a) EOQ order = 5 time; (b) LIC = 72 days]

* LIC = EOQ ÷ Daily consumption

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 12

The details for materials purchase of a company are:

Annual requirement	5,000 units
Ordering cost per order	Rs 20
Cost per unit	Rs 2
Carrying cost	10% of material cost

Required: (a) EOQ in unit; (b) Total cost of materials if order size is 1,000 units

[Answer: EOQ = 1,000 units; Total cost = Rs 10,200]

 

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Stock Level

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 13

The following information are relating to a firm:

Reorder period   `	4 to 6 weeks
Maximum stock level	6,200 units
Reorder level	4,200 units
Minimum consumption	500 units per week

Required: Reorder quantity

 [Answer: ROQ = 4,000 units]

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 14

A firm provides the following information:

Normal consumption	500 units a day
Re-order period	8 to 12 days
Minimum usages	400 units a day
Maximum usages	600 units a day

Required: (1) Reorder level; (2) Minimum stock level

[Answer: ROL = 7,200 units; MSL_Max = 2,200 units]

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 15

Material consumption details are:

Normal consumption	9,000 units per week
Reorder period	4 – 6 weeks
Minimum consumption	6,000 units per week
Maximum consumption	12,000 units per week

Required: (1) Reorder level; (2) Minimum stock level

[Answer: ROL = 72,000 units; MSL_Max = 27,000 units]

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 16

A firm provides the following information:

Reorder level	4,800 units
Maximum stock level	5,000 units
Daily consumption	320 to 600 units
Reorder period	4 to 12 days

Required: Reorder quantity

[Answer: ROQ = 1,480 units]

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 17

The following information is provided:

Reorder period	5 to 7 days
Daily consumption	50 to 60 units
Maximum level	1800 units
Reordering level	1400 units

Required: Reorder quantity

[Answer: ROQ = 650 units

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 18

In a company, weekly minimum and maximum consumption of material A are 25 units and 75 units respectively. The reorder quantity as fixed by the company is 300 units. The material is received within 4 to 6 weeks.

Required: (a) Reorder level; (b) Maximum stock level of material A

[Answer: ROL = 450 units; MSL_Max = 650 units;

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 19

The following information is available:

Reorder period	12 to 16 days
Minimum consumption	800 units
Maximum consumption	1,200 units

Required: Reorder level and minimum stock level  

[Answer: ROL = 19,200 units; Minimum stock level = 5,200 units]

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 20

The following information is available:

Reorder period	4 to 6 days
Daily consumption	40 to 60 units
Maximum level	2,100 units
Reorder level	1,460 units

Required: Reorder quantity

 [Answer: ROQ = 800 units]

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 21

The following information is available:

Maximum level	6,200 units
Reorder quantity	3,000 units
Minimum consumption	200 units per day
Minimum reorder period	8 days

Required: Reordering level  

[Answer: ROL = 4,800 units; *use Max stock level formula]

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 22

The following information is provided:

Reorder level	4,800 units
Reorder quantity	4,000 units
Maximum stock level	8,000 units
Reorder period	4 to 6 days

Required: Minimum consumption per day    

[Answer: Minimum consumption = 200 units]

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 23

The following information is available to you:

Lead-time:	Minimum 3 weeks
	Maximum 6 weeks
Weekly consumption:	Minimum 200 units
	Maximum 400 units

Required: Reorder level and minimum stock level

[Answer: ROL = 2,400 units; Minimum stock level = 1,050 units]

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 24

The following information is given:

Lead-time:	minimum 3 days	maximum 4 days
Weekly consumption:	Minimum 400 units	maximum 500 units

Required: Reorder level and minimum stock level  

 [Answer: ROL = 2,000 units; Minimum stock level = 425 units]

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 25

The following information is available in respect of material:

Minimum consumption per day	100 units
Maximum consumption per day	300 units
Reorder period	4 to 8 days

Required: Reorder level and minimum stock level  

 [Answer: ROL = 2,400 units; Minimum stock level = 1,200 units]

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 26

The following information is available in respect of LK Factory:

Minimum consumption	1,200 units
Maximum Consumption	3,600 units
Reorder quantity	14,400 units
Reorder period	4 − 6 days
Reorder level	21,600 units

Required: Maximum stock level   

[Answer: Maximum stock level = 31,200 units]

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

PROBLEM: 27

The following information is available relating to inventory management:

Maximum stock level	5,000 units
Reorder level	2,500 units
Minimum consumption	300 units per day
Minimum reorder period	6 days

Required: Reorder quantity

[Answer: ROQ = 4,300 units]

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