21) If Douglas Fir, Inc. has a safety stock of 135 units and the average weekly demand is 21 units, how many days can be covered if the shipment from the supplier is delayed?
A) 6.4 days
B) 21 days
C) 45 days
D) 52 days
E) 17 days
22) Flash is a distributor of flash drives. Office Mart is a local retail outlet which sells flash drives. Office Mart purchases from Office, Inc. at $0.80 per flash drive; and, the flash drives are shipped in packages of 30. Office, Inc. pays for all incoming freight, and Office Mart does
not
inspect the flash drives due to Office, Inc.'s reputation for high quality. Annual demand is 160,000 flash drives at a rate of 2,800 flash drives per week. Office Mart earns 12% on its cash investments. The purchase-order lead time is one week. The following costs are available:
Relevant ordering costs per purchase order$116.00
Carrying costs per package per year:
Relevant insurance, materials handling,
breakage, etc., per year$.80
Required
If Office Mart makes an order (1/12 of annual demand) once per month, what are the relevant total costs?
A) $5,593.60
B) $5.683.42
C) $6,284.68
D) $6,486.52
E) $7,286.59
23) Tall Trees Incorporated is a distributor of swings. Toys'n'Tots is a local retail outlet which sells swings. Toys'n'Tots purchases the swings from Tall Trees Incorporated at $.80 per swing; the swings are shipped in cartons of 60. Tall Trees Incorporated pays all incoming freight, and Toys'n'Tots does
not
inspect the swings due to Tall Trees' reputation for high quality. Annual demand is 175,600 swings at a rate of 5,300 swings per week. The company earns 14% on its investments. The managerial accountant provided the following cost data:
Relevant ordering costs per purchase order$150
Carrying costs per carton per year:
Relevant insurance, materials handling
breakage, etc., per year$1.25
If Toys'n'Tots makes an order (1/12 of annual demand) once per month, what are the relevant total costs?
A) $16,209.64
B) $17,708.86
C) $19,380.90
D) $24,117.15
E) $42,768.90