Calculate the maximum stock level The following data relate to stock item PR7:1,000 units per day600 units per day1,300 units per day7.5 days5 days10 days40,000 units13,000 unitsAverage usageMinimum usageMaximum usageAverage lead timeMinimum lead timeMaximum lead timeEOQReorder level

Maximum level of stock = Reorder level + Reorder quantity - (Minimum usage * Minimum lead time)

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Business

Accounting

Calculate the maximum stock level

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Calculate the maximum stock level

The following data relate to stock item PR7:
1,000 units per day
600 units per day
1,300 units per day
7.5 days
5 days
10 days
40,000 units
13,000 units
Average usage
Minimum usage
Maximum usage
Average lead time
Minimum lead time
Maximum lead time
EOQ
Reorder level

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