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Andell manufacturing LTD has provided you with the following information: Maximum usage 80kg per day Minimum usage 40kg per day Minimum lead time 2 days

Andell manufacturing LTD has provided you with the following information:

Maximum usage 80kg per day

Minimum usage 40kg per day

Minimum lead time 2 days

Maximum lead time 4 days

Annual demands 16000kgs

EOQ (previously calculated) 5000kgs

It cost$12.00 to hold one(1) kg per annum and the cost of ordering each consignment is $100.00

You are required to calculate:

The re-order level

Minimum level

Maximum level

List e examples of holding cost

The following was extracted from the books of Andell Manufacturing Ltd

Purchased

September 1

Opening inventory 5 units@ $5.00 each

September 3

10 units @$8.00 each

October 8

20 units @$10.00 each

November 30

30 units @$20.00 each

Issued

September 15

10 units@$10.00 each

October 10

15 units @$12.00 each

December 5

20 units @$15.00

Calculate the closing stock using the perpetual method for:

FIFO

AVCO

Differentiate between periodic and perpetual stock taking

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