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Nazrul Sdn Bhd , a fumiture company, specialised in the manufacturing of a moisture - resistant cabinet. To produce the cabinets, fibreboards are used and
Nazrul Sdn Bhd a fumiture company, specialised in the manufacturing of a moisture resistant cabinet. To produce the cabinets, fibreboards are used and imported from an external supplier. Each cabinet required four pieces of fibreboard. The management of the company is interested in monitoring the stock level of its synthetic woods in store.
The forecasted usage of synthetic wood for the year is as follows:
Month
Pieces
Month
Pieces
January
July
February
August
March
September
April May
October
November
June
December
The reorder quantity is usually constant at pieces, where delivery from the supplier will take as long as months and the shortest time expected is months.
Required:
Compute the following stock level for the year :
i Reorder level
ii Minimum stock level
iii. Maximum stock level.
iv Average Stock level
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