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Alomo Gyata uses 4,000 bags of rice a year for her Waakye business. It costs GH10 to hold one bag of rice in store for
Alomo Gyata uses 4,000 bags of rice a year for her Waakye business. It costs GH10 to hold one bag of rice in store for one year. The cost of ordering each consignment of rice is GH200. Alomo uses between 100 and 600 bags and it takes the suppliers between 1 and 3 months to deliver the rice ordered. Alomo is cost conscious and has contacted you as consultant for an advice on stock/inventory control. Using the above information provided by her, calculate for her guidance
the four (4) critical stock control levels.
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