Test 2: Material Chapter



For the month of January 2024, what would be the quantity of the materials to be requisitioned for both material A and B:.

• 9,000 kg & 6,000 kg respectively

• 18,000 kg & 12,000 kg respectively

• 27,000 kg & 18,000 kg respectively

• 30,000 kg & 20,000 kg respectively.

Answer explanation



The economic order quantity (EOQ) for both the material A & B:

• 13,856 kg & 16,181 kg respectively

• 16,197 kg & 17,327 kg respectively

• 16,181 kg & 17,165 kg respectively

• 13,197 kg & 17,165 kg respectively

Answer explanation

What is the Maximum Level for Material A?

• 18200 kgs

• 12000 kgs

• 16000 kgs

• 16200 kgs

Answer explanation

Calculate savings/loss in purchase of Material A if the purchase order quantity is equal to EOQ

• Profit of INR 321201

• Loss of INR 321201

• Profit of INR 252500

• Loss of INR 252500

Answer explanation

What is the minimum stock level for material A?

• 1800 kgs

• 1200 kgs

• 600 kgs

• 2400 kgs

Answer explanation

EOQ FOR QUESTION 2

THE RE-ORDER LEVEL OF QUESTION 2

Question 2:

The company has been offered a quantity discount of 2% on the purchase of cycle locks provided the order size is 30,000. units at a time. Advise whether quantity discount offer can be accepted?

NAME

REGISTRATION NUMBER