Question
FF Company has obtained the following costs and other data pertaining to one of its materials: Order Quantity = 3,500 units Normal use per day
FF Company has obtained the following costs and other data pertaining to one of its materials:
- Order Quantity = 3,500 units
- Normal use per day = 500 units
- Maximum use per day = 600 units
- Minimum use per day = 100 units
- Lead time = 5 days
Required:
(1) Safety stock (maximum)
(2) Order point
(3) Normal maximum inventory
(4) Absolut maximum inventory
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
13th Edition
9780470374948, 470423684, 470374942, 978-0470423684
