Duke Company stocks a particular item for which the following information is available: Duke Company stocks a particular item for which the following information is available: Minimum usage Maximum usage Normal usage Procurement time Economic order quantity 280 units per day 840 units per đay 550 units per day 16-20 days 10,000 units Calculate the re-order level, minimum stock level and maximum stock level. Minimum Stock Level Reorder Level Maximum Stock Level (10 (II (I) (IV) 5,600 16,800 16,800 12,600 6,720 6,900 6,720 4,200 22,320 22,320 26,800 10,560 O a. IV O b.I O c.II O d. II
Duke Company stocks a particular item for which the following information is available: Duke Company stocks a particular item for which the following information is available: Minimum usage Maximum usage Normal usage Procurement time Economic order quantity 280 units per day 840 units per đay 550 units per day 16-20 days 10,000 units Calculate the re-order level, minimum stock level and maximum stock level. Minimum Stock Level Reorder Level Maximum Stock Level (10 (II (I) (IV) 5,600 16,800 16,800 12,600 6,720 6,900 6,720 4,200 22,320 22,320 26,800 10,560 O a. IV O b.I O c.II O d. II
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Duke Company stocks a particular item for which the following information is available:
Duke Company stocks a particular item for which the following information is available:
Minimum usage
Maximum usage
Normal usage
Procurement time
Economic order quantity
280 units per day
840 units per day
550 units per day
16-20 days
10,000 units
Calculate the re-order level, minimum stock level and maximum stock level.
Minimum
Stock Level
Reorder
Level
5,600
16,800
16,800
12,600
Maximum
Stock Level
(II)
(II)
(IV)
6.720
6,900
6,720
4,200
22,320
22,320
26,800
10,560
O a. IV
O b l
O .II
O d. II](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F50888a09-9f3d-411b-8084-aa61b1732a50%2Fb84c59b2-1ad3-40a4-bc7a-2b5954edd8f2%2Fb1f1f29_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Duke Company stocks a particular item for which the following information is available:
Duke Company stocks a particular item for which the following information is available:
Minimum usage
Maximum usage
Normal usage
Procurement time
Economic order quantity
280 units per day
840 units per day
550 units per day
16-20 days
10,000 units
Calculate the re-order level, minimum stock level and maximum stock level.
Minimum
Stock Level
Reorder
Level
5,600
16,800
16,800
12,600
Maximum
Stock Level
(II)
(II)
(IV)
6.720
6,900
6,720
4,200
22,320
22,320
26,800
10,560
O a. IV
O b l
O .II
O d. II
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