managerial accouting

Sample exercise: A felt company makes a specialised underlay fabric which is laid under carpet. The following is known about the costs associated with this material: Required: a) Calculate Economic Order Quantity (EOQ) b) If the lead time to obtain the stock was 2 months and the company's monthly usage varied from 5800 to 7900 metres per month, at what stock level should the company re-order supplies (the reorder point) of the raw material for its speciality fabric? Assume 12 months per annum. c) If the company was advised that the carrying costs were to increase to \$1.10 per metre, how many times per year would the company order using the new EOQ? d) The company's managers have been discussing switching to a Just in Time inventory system. They ask you, as the Management Accountant, to describe the major benefit to the company of the change to a Just in Time system and two possible risks they should consider