Item X is a standard item stocked in a company’s inventory of spare parts. Each year, the firm uses about
2,000 units of Item X, which costs Php 1,000 per unit. Storage costs, which include insurance and cost of
capital, amount to 18 percent of item unit cost. Placing an order for more of Item X costs Php 400. The
company operates 360 days per year and Item X is received 9 days after placement of order.

How many units of Item X should be ordered each time?

A. 94 units
B. 95 units
C. 100 units
D. 2,000 units

Item X is a standard item stocked in a company’s inventory of spare parts. Each year, the firm uses about 2,000 units of Item X, which costs Php 1,000 per unit. Storage costs, which include insurance and cost of capital, amount to 18 percent of item unit cost. Placing an order for more of Item X costs Php 400. The company operates 360 days per year and Item X is received 9 days after placement of order.

How much would be Item X’s total annual procurement cost? *

Php 16,971

Php 2,000,000

None of the above

Php 8,485

How much would be Item X’s total annual storage cost? *

Php 8,485

Php 16,971

Php 2,000,000

None of the above

How much would be Item X’s total annual stockout cost? *

Php 16,971

Zero

None of the above

Php 8,485

Item X is a standard item stocked in a company’s inventory of spare parts. Each year, the firm uses about 2,000 units of Item X, which costs Php 1,000 per unit. Storage costs, which include insurance and cost of capital, amount to 18 percent of item unit cost. Placing an order for more of Item X costs Php 400. The company operates 360 days per year and Item X is received 9 days after placement of order.

a. How much would be Item X’s total annual storage cost?

• Php 8,485
• Php 16,971
• Php 2,000,000
• None of the above

b. How much would be Item X’s total annual stockout cost?

• Zero
• Php 8,485
• Php 16,971
• None of the above

c. Including its total annual purchasing cost, how much would be Item X’s total annual inventory cost?

• Php 2,008,485
• Php 2,000,000
• Php 2,016,971
• None of the above

Please ANSWER ALL THE QUESTIONS above to avoid being rated as unhelpful. Thank you!

Item X is a standard item stocked in a company’s inventory of spare parts. Each year, the firm uses about 2,000 units of Item X, which costs Php 1,000 per unit. Storage costs, which include insurance and cost of capital, amount to 18 percent of item unit cost. Placing an order for more of Item X costs Php 400. The company operates 360 days per year and Item X is received 9 days after placement of order.

a. How many units of Item X should be ordered each time?

• 94 units
• 95 units
• 100 units
• 2,000 units

b. When should Item X be ordered?

• 50 times a year
• Every 50 days
• Every 9 days
• Whenever Item X’s inventory level drops to 50 units

c. How many times per year would Item X be ordered? 

• 21 times
• 50 times
• 40 times
• None of the above

Please answer ALL OF THE QUESTIONS above and I will rate helpful. Please thank you!

Item X is a standard item stocked in a company’s inventory of spare parts. Each year, the firm uses about 2,000 units of Item X, which costs Php 1,000 per unit. Storage costs, which include insurance and cost of capital, amount to 18 percent of item unit cost. Placing an order for more of Item X costs Php 400. The company operates 360 days per year and Item X is received 9 days after placement of order.

How many times per year would Item X be ordered?

A. 21x
B. 50x
C. 40x
D. None of the above

Item X is a standard item stocked in a company’s inventory of spare parts. Each year, the firm uses about 2,000 units of Item X, which costs Php 1,000 per unit. Storage costs, which include insurance and cost of capital, amount to 18 percent of item unit cost. Placing an order for more of Item X costs Php 400. The company operates 360 days per year and Item X is received 9 days after placement of order.

How many units of Item X should be ordered each time?

94 units

95 units

100 units

2,000 units

1. Item X is a standard item stocked in a company’s inventory of component parts. Each year the firm, on a random basis, uses about 1,700 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $4 per unit of average inventory. Every time an order is placed for more of item X, it costs $22.

   a. Whenever item X is ordered, what should the order size be? (Round your answer to the nearest whole number.)

b. What is the annual cost for ordering item X? (Round your answer to 2 decimal places. Round your intermediate calculation.)

c. What is the annual cost for storing item X? (Round your answer to 2 decimal places. Round your intermediate calculation.)