Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

B. Sesuji Cakery Enterprise produces varieties of instant cake mix flour. The most popular product Sesuji produces is Gingerist Cake. One of the raw materials

image text in transcribed
image text in transcribed
B. Sesuji Cakery Enterprise produces varieties of instant cake mix flour. The most popular product Sesuji produces is Gingerist Cake. One of the raw materials used to produce Gingerist Cake is a premium pastry flour called 'Cucuki". A unit of Gingerist Cake requires 0.5 kg of Cucuki . The bakery produces 320 units to 530 units of Gingerist Cake per week. The demand for the Gingerist Cake is constant at 450 units per week. Currently, the Cucuki are purchased from France with the cost of RM100 per kg. It takes 1 to 3 weeks for the Cucuki to be delivered. The telephone charges in making the order is RM27 per order and the cost of printing and stationery is RM 13 per order The storage cost for each kilogram of stock is 10% from the cost of Cucuki. (Assume there is 50 weeks in a year). Required: Calculate the followings inventory control level for Cucuki: i Economic Order Quantity (EOQ) using formula method. Reorder level. Maximum stock level. (7 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Using Microsoft Excel And Access 20 For Accounting

Authors: Glenn Owen

5th Edition

133751229X, 9781337512299

More Books

Students also viewed these Accounting questions

Question

What is a sales discount? Use 1/10, n/30 in your explanation.

Answered: 1 week ago