Question
QUESTION SIX The JODINGO Ltd uses the component called neel. The company provides the following details: Details cost/Units Monthly demand for finished goods (units) 10,000
QUESTION SIX The JODINGO Ltd uses the component called neel. The company provides the following details: Details cost/Units Monthly demand for finished goods (units) 10,000 Cost of placing an order 10 Tsh Normal usage of input neel per week (units) 40 Annual carrying cost per unit 1.5 Tsh Maximum usage per week (units) 65 Minimum usage per week (unit) 45 Reorder period (weeks) 4 to 6 REQUIRED: Calculate the following for Neel. 1) Reorder Quantity 2) Reorder level 3) Maximum level 4) Minimum level 5) Average inventory QUESTION SEVEN Compute the operating cycle from the following information given below
Raw material consumption 66,000,000 Total Production cost 150,000,000 Total Cost of Sales 157,500,000 Sales for the year 240,000,000 Average Raw Material inventory 4,800,000 Average WIP inventory 5,250,000 Average Finished goods inventory 3,900,000 Average receivable outstanding 7,200,000
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