Question
What is the ordering level for material A? (Material A and B are used as follows: Minimum usage- 10 units each per week Maximum usage-
What is the ordering level for material A? (Material A and B are used as follows: Minimum usage- 10 units each per week Maximum usage- 30 units per week Normal usage - 20 units per week Ordering quantity A= 120 units, B= 200 units Delivery period A=4-6 weeks, B= 2-4 weeks Calculate for each material (1) maximum level (2) minimum level (3) ordering level.)(Use the following details to solve the questions from Q no.4 to Q no.9.)
150 units
180 units
200 units
210 units
What is the minimum level for materials A?
20 units
40 units
80 units
90 units
Calculate maximum level for material A?
200 units
260 unit
300 unit
500 unit
What is the ordering level for material B?
100 units
120 units
150 units
200 units
What is the minimum level for material B?
30 units
60 units
90 units
120 units
Calculate maximum level for material B?
200 units
300 units
400 units
500 units
What is the formula for calculating Economic order quantity?
EOQ= 2U*P/S
EOQ= 2U*S/P
EOQ=2S*P/Q
EOQ=2Q*S/P
Step by Step Solution
There are 3 Steps involved in it
Step: 1
1 Material A Maximum Level Reordering Level Maximum Consumption Maximum Delivery Period Reordering L...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Accounting Tools for business decision making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
6th Edition
978-1119191674, 047053477X, 111919167X, 978-0470534779
