EOQ – NBC Institute

MI – Nov 2020 – L1 – SA – Q1 – Forecasting Techniques

The question asks to calculate the Economic Order Quantity (EOQ) based on holding costs, ordering costs, and annual demand.

Question

A company uses 40,000 units of an item per annum. It is recorded that the holding costs are N4 per annum and the ordering cost is N50 per order. The Economic order Quantity is:

A. 2,500
B. 1,500
C. 1,000
D. 800
E. 500

Answer

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Tags: Cost Management, Decision Making, EOQ, Forecasting Techniques, Inventory Management, Operations
Level: Level 1

Topic: Forecasting Techniques
Series: NOV 2020

QTB – May 2017 – L1 – SA – Q20 – Operations Research

This question calculates the holding cost of a unit item based on EOQ and given parameters.

Question

In Inventory Control, the Economic Order Quantity (EOQ) of an item is given as 500 units, ordering cost as ₦500 per order, and the demand for the item in six months is 2,500 units. What is the holding cost of a unit of the item per annum?

A. ₦10
B. ₦20
C. ₦30
D. ₦40
E. ₦50

Answer

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Tags: Business operations, EOQ, Holding Cost
Level: Level 1

Topic: Operations Research
Series: MAY 2017

MI – Nov 2021 – L1 – SA – Q7 – Forecasting Techniques

Calculate the EOQ for minimizing total cost.

Question

ABCD uses 240,000 units of material BC each year, which cost ₦5.40 for each unit after a 10% discount. The cost of making an order for the year is ₦15,312.50. Find the quantity that will minimize the total cost.

A. 36,893 units
B. 35,000 units
C. 26,087 units
D. 24,745 units
E. 24,000 units

Answer

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Tags: Economic Order Quantity, EOQ, Inventory Management
Level: Level 1

Topic: Forecasting Techniques
Series: NOV 2021

MI – Nov 2022 – L1 – SA – Q4 – Inventory Management

Calculation of Economic Order Quantity (EOQ) using given data

Question

What is the approximate Economic Order Quantity (EOQ) using the following data?
Annual consumption: 30,000 units
Ordering cost: ₦1,000
Purchase price: ₦20 per unit
Carrying cost: 5%

A. 7,746
B. 7,784
C. 7,858
D. 7,900
E. 7,943

Answer

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Tags: Carrying Cost, EOQ, Inventory Control, Ordering Cost
Level: Level 1

Topic: Inventory Management
Series: NOV 2022

MI – Nov 2014 – L1 – SA – Q6 – Accounting for Cost Elements-

Calculate the maximum inventory level based on usage and lead time.

Question

PQR Limited has an average usage of 1,200 units of stamps, minimum usage of 800 units, and maximum usage of 2,000 units per day. If the lead time is 10 – 15 days and the previously calculated Economic Order Quantity is 6,000 units, calculate the Maximum Level.

A. 30,000 units
B. 28,000 units
C. 18,000 units
D. 15,000 units
E. 8,000 units

Answer

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Tags: EOQ, Inventory Control, Lead Time, Maximum Level
Level: Level 1

Series: NOV 2014

MI – May 2021 – L1 – SA – Q8 – Accounting for Cost Elements

Calculate the Economic Order Quantity (EOQ) based on given values.

Question

A company uses 40,000 units of an item per annum. It is recorded that the holding costs are ₦4 per unit and ordering cost is ₦50 per order. The Economic Order Quantity (EOQ) is:

A. 2,500
B. 1,500
C. 1,000
D. 800
E. 500

Answer

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Tags: EOQ, Holding Cost, Inventory, Ordering Cost
Level: Level 1

Topic: Accounting for Cost Elements
Series: MAY 2021

MI – Nov 2019 – L1 – SA – Q9 – Accounting for Cost Elements

This question asks to identify a factor not considered in calculating the economic order quantity (EOQ).

Question

Economic order quantity is a quantity of materials and components to be ordered which takes into account the optimum combination of all the following, EXCEPT:
A. Stockholding costs
B. Amount of costs tied up in inventory
C. Order delivery time
D. Cost of processing the order
E. Warehouse rent

Answer

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Tags: EOQ, Inventory Management, Management Information, MCQ
Level: Level 1

Series: NOV 2019

MI – May 2017 – L1 – SA – Q2 – Decision-Making Techniques

Identify the factor not considered in EOQ calculations.

Question

Economic Order Quantity is a quantity of materials and components to be ordered which takes into account the optimum combination of all the following EXCEPT:
A. Stockholding costs
B. Amount of costs tied up in inventory
C. Order delivery time
D. Cost of processing the order
E. Consumption rate

Answer

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Tags: EOQ, Inventory Management, Stock Costs
Level: Level 1

Topic: Decision-making techniques
Series: MAY 2017

MA – Nov 2015 – L2 – Q4 – Other aspects of performance measurement

Discuss the relevant costs for EOQ, motives for holding stock, and compute EOQ and associated costs for Quaku Manu Limited.

Question

What are the two most relevant costs for determining the Economic Order Quantity? Give THREE (3) specific examples in each case. (6 marks)
b) Examine the THREE (3) motives for holding stocks. (3 marks)
c) Explain Economic Order Quantity and discuss TWO (2) of its relevance. (3 marks)
d) Quaku Manu Limited purchases and sells CDs. The company has been experiencing stock shortages and excess stocks at certain times in the year. The manager is concerned about the impact of overstocking and understocking and is therefore requesting you to assist in determining the most economic quantity of CDs to order. He has made the following information available to you:

Item	Value
Sales per annum	GHS 20,000,000
Units of items sold	200,000 units
Markup on cost of purchases	25% of purchase price
Ordering cost per order	GHS 200
Holding cost per unit	5% of unit price

Required:
i) Determine the economic order quantity. (2 marks)
ii) What is the annual ordering cost? (2 marks)
iii) Determine the annual holding cost. (2 marks)
iv) How many times in a year will the company order for goods? (1 mark)
v) What is the purchase value per order quantity? (1 mark)
(Total = 20 marks)

Answer

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Tags: EOQ, Holding costs, Inventory Management, Ordering costs, Stock motives
Level: Level 2

Topic: Other Aspects of Performance Measurement
Series: NOV 2015

MI – Nov 2020 – L1 – SA – Q1 – Forecasting Techniques

The question asks to calculate the Economic Order Quantity (EOQ) based on holding costs, ordering costs, and annual demand.

Question

A company uses 40,000 units of an item per annum. It is recorded that the holding costs are N4 per annum and the ordering cost is N50 per order. The Economic order Quantity is:

A. 2,500
B. 1,500
C. 1,000
D. 800
E. 500

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Management, Decision Making, EOQ, Forecasting Techniques, Inventory Management, Operations
Level: Level 1

Topic: Forecasting Techniques
Series: NOV 2020

QTB – May 2017 – L1 – SA – Q20 – Operations Research

This question calculates the holding cost of a unit item based on EOQ and given parameters.

Question

A. ₦10
B. ₦20
C. ₦30
D. ₦40
E. ₦50

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business operations, EOQ, Holding Cost
Level: Level 1

Topic: Operations Research
Series: MAY 2017

MI – Nov 2021 – L1 – SA – Q7 – Forecasting Techniques

Calculate the EOQ for minimizing total cost.

Question

A. 36,893 units
B. 35,000 units
C. 26,087 units
D. 24,745 units
E. 24,000 units

Answer

Find Related Questions by Tags, levels, etc.

Tags: Economic Order Quantity, EOQ, Inventory Management
Level: Level 1

Topic: Forecasting Techniques
Series: NOV 2021

MI – Nov 2022 – L1 – SA – Q4 – Inventory Management

Calculation of Economic Order Quantity (EOQ) using given data

Question

What is the approximate Economic Order Quantity (EOQ) using the following data?
Annual consumption: 30,000 units
Ordering cost: ₦1,000
Purchase price: ₦20 per unit
Carrying cost: 5%

A. 7,746
B. 7,784
C. 7,858
D. 7,900
E. 7,943

Answer

Find Related Questions by Tags, levels, etc.

Tags: Carrying Cost, EOQ, Inventory Control, Ordering Cost
Level: Level 1

Topic: Inventory Management
Series: NOV 2022

MI – Nov 2014 – L1 – SA – Q6 – Accounting for Cost Elements-

Calculate the maximum inventory level based on usage and lead time.

Question

A. 30,000 units
B. 28,000 units
C. 18,000 units
D. 15,000 units
E. 8,000 units

Answer

Find Related Questions by Tags, levels, etc.

Tags: EOQ, Inventory Control, Lead Time, Maximum Level
Level: Level 1

Series: NOV 2014

MI – May 2021 – L1 – SA – Q8 – Accounting for Cost Elements

Calculate the Economic Order Quantity (EOQ) based on given values.

Question

A company uses 40,000 units of an item per annum. It is recorded that the holding costs are ₦4 per unit and ordering cost is ₦50 per order. The Economic Order Quantity (EOQ) is:

A. 2,500
B. 1,500
C. 1,000
D. 800
E. 500

Answer

Find Related Questions by Tags, levels, etc.

Tags: EOQ, Holding Cost, Inventory, Ordering Cost
Level: Level 1

Topic: Accounting for Cost Elements
Series: MAY 2021

MI – Nov 2019 – L1 – SA – Q9 – Accounting for Cost Elements

This question asks to identify a factor not considered in calculating the economic order quantity (EOQ).

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: EOQ, Inventory Management, Management Information, MCQ
Level: Level 1

Series: NOV 2019

MI – May 2017 – L1 – SA – Q2 – Decision-Making Techniques

Identify the factor not considered in EOQ calculations.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: EOQ, Inventory Management, Stock Costs
Level: Level 1

Topic: Decision-making techniques
Series: MAY 2017

MA – Nov 2015 – L2 – Q4 – Other aspects of performance measurement

Discuss the relevant costs for EOQ, motives for holding stock, and compute EOQ and associated costs for Quaku Manu Limited.

Question

Item	Value
Sales per annum	GHS 20,000,000
Units of items sold	200,000 units
Markup on cost of purchases	25% of purchase price
Ordering cost per order	GHS 200
Holding cost per unit	5% of unit price

Answer

Find Related Questions by Tags, levels, etc.

Tags: EOQ, Holding costs, Inventory Management, Ordering costs, Stock motives
Level: Level 2

Topic: Other Aspects of Performance Measurement
Series: NOV 2015

Question Tag: EOQ

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MI – Nov 2020 – L1 – SA – Q1 – Forecasting Techniques

The question asks to calculate the Economic Order Quantity (EOQ) based on holding costs, ordering costs, and annual demand.

You're reporting an error for "MI – Nov 2020 – L1 – SA – Q1 – Forecasting Techniques"

QTB – May 2017 – L1 – SA – Q20 – Operations Research

This question calculates the holding cost of a unit item based on EOQ and given parameters.

You're reporting an error for "QTB – May 2017 – L1 – SA – Q20 – Operations Research"

MI – Nov 2021 – L1 – SA – Q7 – Forecasting Techniques

Calculate the EOQ for minimizing total cost.

You're reporting an error for "MI – Nov 2021 – L1 – SA – Q7 – Forecasting Techniques"

MI – Nov 2022 – L1 – SA – Q4 – Inventory Management

Calculation of Economic Order Quantity (EOQ) using given data

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MI – Nov 2014 – L1 – SA – Q6 – Accounting for Cost Elements-

Calculate the maximum inventory level based on usage and lead time.

You're reporting an error for "MI – Nov 2014 – L1 – SA – Q6 – Accounting for Cost Elements-"

MI – May 2021 – L1 – SA – Q8 – Accounting for Cost Elements

Calculate the Economic Order Quantity (EOQ) based on given values.

You're reporting an error for "MI – May 2021 – L1 – SA – Q8 – Accounting for Cost Elements"

MI – Nov 2019 – L1 – SA – Q9 – Accounting for Cost Elements

This question asks to identify a factor not considered in calculating the economic order quantity (EOQ).

You're reporting an error for "MI – Nov 2019 – L1 – SA – Q9 – Accounting for Cost Elements"

MI – May 2017 – L1 – SA – Q2 – Decision-Making Techniques

Identify the factor not considered in EOQ calculations.

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MA – Nov 2015 – L2 – Q4 – Other aspects of performance measurement

Discuss the relevant costs for EOQ, motives for holding stock, and compute EOQ and associated costs for Quaku Manu Limited.

You're reporting an error for "MA – Nov 2015 – L2 – Q4 – Other aspects of performance measurement"

MI – Nov 2020 – L1 – SA – Q1 – Forecasting Techniques

The question asks to calculate the Economic Order Quantity (EOQ) based on holding costs, ordering costs, and annual demand.

You're reporting an error for "MI – Nov 2020 – L1 – SA – Q1 – Forecasting Techniques"

QTB – May 2017 – L1 – SA – Q20 – Operations Research

This question calculates the holding cost of a unit item based on EOQ and given parameters.

You're reporting an error for "QTB – May 2017 – L1 – SA – Q20 – Operations Research"

MI – Nov 2021 – L1 – SA – Q7 – Forecasting Techniques

Calculate the EOQ for minimizing total cost.

You're reporting an error for "MI – Nov 2021 – L1 – SA – Q7 – Forecasting Techniques"

MI – Nov 2022 – L1 – SA – Q4 – Inventory Management

Calculation of Economic Order Quantity (EOQ) using given data

You're reporting an error for "MI – Nov 2022 – L1 – SA – Q4 – Inventory Management"

MI – Nov 2014 – L1 – SA – Q6 – Accounting for Cost Elements-

Calculate the maximum inventory level based on usage and lead time.

You're reporting an error for "MI – Nov 2014 – L1 – SA – Q6 – Accounting for Cost Elements-"

MI – May 2021 – L1 – SA – Q8 – Accounting for Cost Elements

Calculate the Economic Order Quantity (EOQ) based on given values.

You're reporting an error for "MI – May 2021 – L1 – SA – Q8 – Accounting for Cost Elements"

MI – Nov 2019 – L1 – SA – Q9 – Accounting for Cost Elements

This question asks to identify a factor not considered in calculating the economic order quantity (EOQ).

You're reporting an error for "MI – Nov 2019 – L1 – SA – Q9 – Accounting for Cost Elements"

MI – May 2017 – L1 – SA – Q2 – Decision-Making Techniques

Identify the factor not considered in EOQ calculations.

You're reporting an error for "MI – May 2017 – L1 – SA – Q2 – Decision-Making Techniques"

MA – Nov 2015 – L2 – Q4 – Other aspects of performance measurement

Discuss the relevant costs for EOQ, motives for holding stock, and compute EOQ and associated costs for Quaku Manu Limited.

You're reporting an error for "MA – Nov 2015 – L2 – Q4 – Other aspects of performance measurement"

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