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From the following information calculate the Maximum stock level, Minimum stock level, Re-ordering level and Danger stock level:   Average consumption                                   330 units per day Maximum consumption                                420 units per day Minimum consumption                                 240 units per day Re-order quantity                                           3,600 units Re-order period                                               10 to 15 days Emergency Re-order period                         12 days

From the following information calculate the Maximum stock level, Minimum stock level, Re-ordering level and Danger stock level:   Average consumption                                   330 units per day Maximum consumption                                420 units per day Minimum consumption                                 240 units per day Re-order quantity                                           3,600 units Re-order period                                               10 to 15 days Emergency Re-order period                         12 days

FINANCIAL ACCOUNTING
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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From the following information calculate the Maximum stock level, Minimum stock level, Re-ordering level and Danger stock level:

 

  1. Average consumption                                   330 units per day
  2. Maximum consumption                                420 units per day
  3. Minimum consumption                                 240 units per day
  4. Re-order quantity                                           3,600 units
  5. Re-order period                                               10 to 15 days
  6. Emergency Re-order period                         12 days

 

 

 
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