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# Inventory Management | Solution of Past Question solution of Account

Inventory management

## Stock level

### 2076 Set B Q. No. 19

Maximum stock level = ROL + ROQ – [min. consumption * Min. lead time]

Or, 10000 = 6000 + ROQ – [400 * 10]

Or, 4000 = ROQ – 4000

Or, ROQ = 8000 units

Re-order quantity = 8000 units

### 2075 GIE Q. No. 19

ROL = Maximum consumption * Maximum lead time

= 3000 * 8

= 24000 units

Maximum stock level = ROL + ROQ – [min. consumption * Min. lead time]

= 24000 + 1200 – [200 * 6]

= 24000 + 1200 – 1200

= 24000 units

Maximum stock level = 24000 units

### 2074 Set A Q. No. 19

Minimum stock level = ROL – [Average consumption * Average lead time]

= 3600 – [(400 + 600)/2 * (4+6)/2]

= 3600 – [500 * 5]

= 3600 – 2500

= 1100 units

Minimum stock level = 1100 units

### 2071 Set D Q. No. 19

ROL = Maximum consumption * Maximum lead time

= 200 * 15

= 3000 units

Maximum stock level = ROL + ROQ – [min. consumption * Min. lead time]

= 3000 + 1500 – [100 * 10]

= 4500 – 1000

= 3500 units

Maximum stock level = 3500 units

### 2070 Set C Q. No. 19

ROL = Maximum consumption * Maximum lead time

= 3000 * 6

= 18000 units

Minimum stock level = ROL – [Average consumption * Average lead time]

= 18000 – [2500 * 5]

= 18000 – 12500

= 5500 units

Minimum stock level = 5500 units

### 2070 Set D Q. No. 19

ROL = Maximum consumption * Maximum lead time

= 5000 * 7

= 35000 units

Maximum stock level = ROL + ROQ – [min. consumption * Min. lead time]

= 35000 + 8000 – [3000 * 5]

= 35000 + 8000 – 15000

= 28000 units

Maximum stock level = 28000 units

### 2069 (Set B) Q. No. 19

ROL = Maximum consumption * Maximum lead time

= 600 * 6

= 3600 units

Maximum stock level = ROL + ROQ – [min. consumption * Min. lead time]

= 3600 + 1500 – [400 * 2]

= 3600 + 1500 – 800

= 4300 units

Maximum stock level = 4300 units

### 2068 Q. No. 19

ROL = Maximum consumption * Maximum lead time

= 600 * 6

= 3600 units

Maximum stock level = ROL + ROQ – [min. consumption * Min. lead time]

= 3600 + 1500 – [400 * 2]

= 3600 + 1500 – 800

= 4300 units

Maximum stock level = 4300 units

### 2067 Q. No. 19

Maximum stock level = ROL + ROQ – [min. consumption * Min. lead time]

= 21600 + 14400 – [1200 * 4]

= 21600 + 14400 – 4800

= 31200 units

Maximum stock level = 31200 units

### 2066 Supp. Q. No. 19

ROL = Maximum consumption * Maximum lead time

Or, 4800 = Maximum consumption * 6

Or, Maximum consumption = 800

Maximum stock level = ROL + ROQ – [min. consumption * Min. lead time]

Or, 8000 = 4800 + 4000 – [Min. consumption * 4]

Or, Min. consumption * 4 = 800

Or, Min. consumption = 200

Minimum stock level = ROL – [Average consumption * Average lead time]

= 4800 – [500 * 5]

= 4800 – 2500

= 2300 units

Minimum stock level = 2300 units

### 2065 Q. No. 9 (OLD)

Maximum stock level = ROL + ROQ – [min. consumption * Min. lead time]

Or, 6200 = ROL + 3000 – [200 * 8]

Or, 6200 = ROL + 3000 – 1600

Or, ROL = 4800 units

Reorder level = 4800 units

### 2064 Q. No. 19

ROL = Maximum consumption * Maximum lead time

= 300 *8

= 2400 units

Minimum stock level = ROL – [Average consumption * Average lead time]

= 2400 – [200 * 6]

= 2400 – 1200

= 1200 units

Reorder level (ROL) = 2400 units

Minimum stock level = 1200 units

### 2064 Q. No. 12 (OLD)

Maximum stock level = ROL + ROQ – [min. consumption * Min. lead time]

Or, 2100 = 1460 + ROQ – [40 * 4]

Or, 640 = ROQ – 160

Or, ROQ = 800 units

Reorder quantity = 8000 units

### 2063 Q. No. 10

Reorder level = Maximum consumption * Maximum lead time

= 500 * 4

= 2000 units

Minimum stock level = ROL – [Average consumption * Average lead time]

= 2000 – [450 * 3.5]

= 2000 – 1575

= 425 units

Minimum stock level = 425 units

### 2062 Q. No. 10

ROL = Maximum consumption * Maximum lead time

= 6 * 400

= 2400 units

Minimum stock level = ROL – [Average consumption * Average lead time]

= 2400 – [300 * 4.5]

= 2400 – 1350

= 1050 units

Reorder level = 2400 units

Minimum stock level = 1050 units

### 2061 Q. No. 10

ROL = Maximum consumption * Maximum lead time

= 75 * 6

= 450 units

Maximum stock level = ROL + ROQ – [min. consumption * Min. lead time]

= 450 + 300 – [25 * 4]

= 750 – 100

= 650 units

Maximum stock level = 650 units

### 2060 Q. No. 9

Maximum stock level = ROL + ROQ – [min. consumption * Min. lead time]

Or, 1800 = 1400 + ROQ – [60 * 5]

Or, 400 = ROQ – 300

Or, ROQ = 700 units

Reorder quantity = 700 units

### 2060 Supp. Q. No. 14

Average consumption = (Min. consumption + Max. consumption) / 2

Or, 30 = (Min. consumption + 30)/2

Or, 60 = Min. consumption + 30

Or, Minimum consumption = 30 units

Maximum stock level = ROL + ROQ – [min. consumption * Min. lead time]

= 400 + 600 – [30 * 9]

= 1000 – 270

= 730 units

Maximum stock level = 730 units

## Economic order quantity

### 2076 Set B Q. No. 19

Ordering cost per unit (O) = Rs. 300
Annual requirement (A) = 30000 units
Carrying cost per unit (C) = 10 % of 20
= 2
Economic order quantity =
\sqrt{\frac{2AO}C}
= \sqrt{\frac{2*30000*300}2}
= \sqrt{\frac{1800000}2}
= \sqrt{90000}
= 3000 units

Number of orders per year = \frac A{EOQ}
= \frac 30000{3000}
= 10 orders

### 2075 Set A Q. No. 19

Ordering cost per unit (O) = Rs. 60
Annual requirement (A) = 36000 units
Carrying cost per unit (C) = 10 % of 100
= 10
Economic order quantity =
\sqrt{\frac{2AO}C}
= \sqrt{\frac{2*36000*60}10}
= \sqrt{\frac{4320000}10}
= \sqrt{432000}
= 657.27 units

### 2075 Set B Q. No. 19

Ordering cost per unit (O) = Rs. 250
Annual requirement (A) = 50000 units
Carrying cost per unit (C) = 10 % of 20
= 62.5
Economic order quantity =
\sqrt{\frac{2AO}C}
= \sqrt{\frac{2*50000*250}62.5}
= \sqrt{\frac{1800000}2}
= \sqrt{{90000}
= 3000 units

### 2073 Supp. Q. No. 19

Ordering cost per unit (O) = Rs. 5
Annual requirement (A) = 90000 kg
Carrying cost per unit (C) = 10 % of 50
= 5
Economic order quantity =
\sqrt{\frac{2AO}C}
= \sqrt{\frac{2*90000*5}5}
= \sqrt{\frac{900000}5}
= \sqrt{{180000}
= 424.25 Kg

### 2073 Set C Q. No. 19

Ordering cost per unit (O) = Rs. 300
Annual requirement (A) = 60000 units
Carrying cost per unit (C) = 20 % of 20
= 4
Economic order quantity =
\sqrt{\frac{2AO}C}
= \sqrt{\frac{2*60000*300}4}
= \sqrt{\frac{36000000}4}
= \sqrt{{900000}
= 3000 units

### 2073 Set D Q. No. 19

Ordering cost per unit (O) = Rs. 160
Annual requirement (A) = 5000 units
Carrying cost per unit (C) = 10 % of 2
= 0.2
Economic order quantity =
\sqrt{\frac{2AO}C}
= \sqrt{\frac{2*5000*160}0.2}
= \sqrt{\frac{1600000}0.2}
= \sqrt{{8000000}
= 2828.43 units

### 2072 Supp. Q. No. 19

Ordering cost per unit (O) = Rs. 50
Annual requirement (A) = 60000 units
Carrying cost per unit (C) = 10 % of 60
= 6
Economic order quantity =
\sqrt{\frac{2AO}C}
= \sqrt{\frac{2*60000*50}6}
= \sqrt{\frac{6000000}6}
= \sqrt{{1000000}
= 1000 units

### 2072 Set C Q. No. 19

Ordering cost per unit (O) = Rs. 80
Annual requirement (A) = 10000 units
Carrying cost per unit (C) = 0.40

Economic order quantity =
\sqrt{\frac{2AO}C}
= \sqrt{\frac{2*10000*80}0.40}
= \sqrt{\frac{1600000}0.40}
= \sqrt{{4000000}
= 2000 units

### 2072 Set D Q. No. 19

Ordering cost per unit (O) = Rs. 500
Annual requirement (A) = 50000 units
Carrying cost per unit (C) = 10 % of 20
= 2
Economic order quantity =
\sqrt{\frac{2AO}C}
= \sqrt{\frac{2*50000*500}2}
= \sqrt{\frac{50000000}2}
= \sqrt{{25000000}
= 5000 units

### 2072 Set E Q. No. 19

Ordering cost per unit (O) = Rs. 20
Annual requirement (A) = 10000 units
Carrying cost per unit (C) = 0.40

Economic order quantity =
\sqrt{\frac{2AO}C}
= \sqrt{\frac{2*10000*20}0.40}
= \sqrt{\frac{400000}0.40}
= \sqrt{{1000000}
= 1000 units

No. of purchase orders = \frac A{EOQ}
= \frac 10000{1000}
= 10 times

### 2071 Supp. Q. No. 19

Ordering cost per unit (O) = Rs. 200
Annual requirement (A) = 20000 units
Carrying cost per unit (C) = 20 % of 10
= 2
Economic order quantity =
\sqrt{\frac{2AO}C}
= \sqrt{\frac{2*20000*200}2}
= \sqrt{\frac{8000000}2}
= \sqrt{{4000000}
= 2000 units

### 2071 Set C Q. No. 19

Ordering cost per unit (O) = Rs. 10
Annual requirement (A) = 900 units
Carrying cost per unit (C) = 10 % of 2
= 0.2
Economic order quantity =
\sqrt{\frac{2AO}C}
= \sqrt{\frac{2*900*10}0.2}
= \sqrt{\frac{18000}0.2}
= \sqrt{{90000}
= 300 units

### 2070 Supp. Q. No. 19

Ordering cost per unit (O) = Rs. 12
Annual requirement (A) = 600 units
Carrying cost per unit (C) = 20 % of 20
= 4
Economic order quantity =
\sqrt{\frac{2AO}C}
= \sqrt{\frac{2*600*12}4}
= \sqrt{\frac{14400}4}
= \sqrt{{3600}
= 60 units

### 2069 Supp. Set A Q. No. 19

Ordering cost per unit (O) = Rs. 50
Annual requirement (A) = 20000 units
Carrying cost per unit (C) = 10 % of 20
= 2
Economic order quantity =
\sqrt{\frac{2AO}C}
= \sqrt{\frac{2*20000*50}2}
= \sqrt{\frac{2000000}2}
= \sqrt{{1000000}
= 1000 units

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