Answer Happy

Q6
Use the following scenario: Builders Supply is a company that
sells cement. Their demand for cement is reasonably constant
throughout the year. Last year they sold 9 600 tonnes of cement.
Builders Supply purchases its bagged cement from a single supplier.
The cost of placing an order is R75 each time an order is placed.
Inventory holding cost is 20 per cent of purchase cost. They
purchase cement at R80 per ton. The company would like to make a
single order of cement. Calculate the economic order quantity
(EOQ). Cost of holding inventory is ____.
a.16
b.80
c.40
Q7
Use the following scenario: Builders Supply is a company that
sells cement. Their demand for cement is reasonably constant
throughout the year. Last year they sold 9 600 tonnes of cement.
Builders Supply purchases its bagged cement from a single supplier.
The cost of placing an order is R75 each time an order is placed.
Inventory holding cost is 20 per cent of purchase cost. They
purchase cement at R80 per ton. The company would like to make a
single order of cement. Calculate the economic order quantity
(EOQ). Economic order quantity (EOQ) = ____.
a.3 000
b.30
c.300
Q8
Use the following scenario: Builders Supply is a company that
sells cement. Their demand for cement is reasonably constant
throughout the year. Last year they sold 9 600 tonnes of cement.
Builders Supply purchases its bagged cement from a single supplier.
The cost of placing an order is R75 each time an order is placed.
Inventory holding cost is 20 per cent of purchase cost. They
purchase cement at R80 per ton. The company would like to make a
single order of cement. Inventory ties up working capital. What can
be done to reduce inventory? Choose the correct option.
a.Investigate alternative delivery channels to reduce transport
costs, reduce process time between customer order and despatch and
reduce changeover times.
b.Investigate alternative delivery channels to reduce transport
costs, reduce process time between customer order and despatch,
reduce changeover times and eliminate demand forecasting.
c.Investigate alternative delivery channels to reduce transport
costs and reduce process time between customer order and
despatch.
d.Investigate alternative delivery channels to reduce transport
costs
Q9
Use the following scenario: Builders Supply is a company that
sells cement. Their demand for cement is reasonably constant
throughout the year. Last year they sold 9 600 tonnes of cement.
Builders Supply purchases its bagged cement from a single supplier.
The cost of placing an order is R75 each time an order is placed.
Inventory holding cost is 20 per cent of purchase cost. They
purchase cement at R80 per ton. The company would like to make a
single order of cement. Indicate whether the following statements
are true or false. The performance of an operation in a supply
chain does not necessarily reflect the performance of the whole
supply chain.
a.True
b.False
Q10
Use the following scenario: Builders Supply is a company that
sells cement. Their demand for cement is reasonably constant
throughout the year. Last year they sold 9 600 tonnes of cement.
Builders Supply purchases its bagged cement from a single supplier.
The cost of placing an order is R75 each time an order is placed.
Inventory holding cost is 20 per cent of purchase cost. They
purchase cement at R80 per ton. The company would like to make a
single order of cement. Indicate whether the following statements
are true or false. Supply chain management coordinates an
operation’s activities on the demand and supply side.
a.False
b.True