Ministry of Education
King Khalid University
Industrial Engineering Department
MID TERM EXAM NO:01
Course name: Inventory Control & Materials Handling
Course code: 423IE-3
Time: 09:00 - 10:00 AM
Date: 30-05-1443 Hj
ANSWER BOOK
Student name (English):………………………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………………………….......... :)‫اسم الطالب (عربي‬
University ID: ………………………………
Question No.
Marks (numbers)
Marks (written)
xxxxxxxxx
xxxxxxxxx
1st/05
2nd/05
3rd/06
4th/10
5th/04
6th/05
7th/05
8th/00
Total/40
Semester work/60
Total + Semester work/100
Examiner & Sign.: ………………………………………………………
Checker & Sign.:……………………………………………
Page 1 of 6
Question No: 01
[02 Marks]
Choose the correct answer for each question.
1) Given that D = 14000, Co = 400, C = 40, and i = 20%. The value of EOQ, N, T, and TC are?
(a) EOQ = 1183.32, N = 11.83 orders, T = 0.084 year/order, TC = 9465.72
(b) EOQ = 1183.32, N = 11.83 orders, T = 0.084-year, TC = 9465.72
(c) EOQ = 1183.32, N = 11.83 orders, T = 0.084 order/year, TC = 9465.72
(d) EOQ = 1183.32, N = 11.83 years, T = 0.084 year/order, TC = 9465.72
2) Find the EOQ given D = 16000, Co = 600, C = 80 and i = 20% and Cs = 30 $/unit/years, Find TC, N, and T?
(a) EOQ = 1265.44, N = 11.79, T = 0.0865 years, TC = 14154.43
(b) EOQ = 1354, N = 15, T = 0.0865 years, TC = 14154.43
(c) EOQ = 1356.46, N = 11.79, T = 0.0865 years, TC = 14154.43
Page 2 of 6
Question No: 02
[03 Marks]
Consider two items with the following data D1=12000, D2=16000, Co=1000, C1=80 and C2=50, i=20%. There is a limit
on the total number of orders. Find Q1 and Q2.
Page 3 of 6
Question No: 03
[03 Marks]
Consider two items with the following data D1=12000, D2=16000, Co=1000, C1=80 and C2=50, i=20%. There is a limit
of 80000 SRs on the money value of average inventory. Find Q1 and Q2.
Page 4 of 6
Question No: 04
[05 Marks]
Consider two items with the following data D1 = 12000, D2 = 16000, Co = 1000, C1 = 80 and C2 = 50, i = 20%. There is
a limit of 80000 SRs on the money value of average inventory. There is also a space restriction of 80000 on the space
of average inventory. The two items require space of 100 and 60. Find Q1 and Q2. Take Lambda ranges from 0 to 1 in
steps of 0.20.
Page 5 of 6
Question No: 05
[02 Marks]
Consider two items with the following data D1 = 18000, D2 = 20000, C0 = 1000, C1 = 80 and C2 = 50, i = 20%. The
order cost has two components – an administrative cost of 400 and truck cost of 600. The company can save one truck
cost if the items are ordered together. Find the %gain compared to EOQ?
Page 6 of 6