Question
A.Cable Manufacturing Ltd. has provided you with the following information: Maximum usage80kg per day Minimum usage 40kg per day Maximum lead time4 days Minimum lead
A.Cable Manufacturing Ltd. has provided you with the following information:
Maximum usage80kg per day
Minimum usage 40kg per day
Maximum lead time4 days
Minimum lead time2 days
Annual demands16,000kgs
EOQ 5,000kgs
It cost $12 to hold 1kg per annum and the cost of ordering each consignment is $100.
Required: calculate
i.The reorder level
ii.Minimum level
iii.Maximum level
iv.List three examples of holding cost
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Accounting for Governmental and Nonprofit Entities
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus
15th Edition
978-0256168723, 77388720, 256168725, 9780077388720, 978-007337960
