Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tuafi Investments CC is a company that ventured into manufactures bricks for the low-income housing. Its operations are at an infant stage. The economic order

Tuafi Investments CC is a company that ventured into manufactures bricks for the low-income housing. Its operations are at an infant stage. The economic order quantity is 12 000 kg. However, the store administrator plans for the company's inventory requirements since the brick formation requires 50 kg of cement, sand and water. The following details relating to company inventory: Lead time 7 to 13 working days Minimum usage 400 kilogram per day Average usage 600 kilogram per day Maximum usage 200 percent of Minimum usage Assume the store administrator orders 800 kg of cements each order during the year, and the annual requirement is 19 600 kg. 

Determine the reorder Level.

Step by Step Solution

3.52 Rating (149 Votes )

There are 3 Steps involved in it

Step: 1

Solution Reorder level Maximum usageMaximum period Minimum u... 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

Advanced Accounting

Authors: Debra C. Jeter, Paul Chaney

5th Edition

1118022297, 9781118214169, 9781118022290, 1118214161, 978-1118098615

More Books

Students also viewed these Accounting questions

Question

7. What kinds of sounds most strongly activate the auditory cortex?

Answered: 1 week ago