Question
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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Beating The Finacial Futures Market 2023 Deluxe Edition Almanac
Authors: Art Collins
1st Edition
979-8375310534
