The components M1 and M2 are used in the manufacture of an article. The following. data relate to the components, Minimum usage: 25 units.per week each Maximum usaģe: 75 units per week each Reorder' period: M1 -'4 to 6 weeks M2 - 2 to 4 weeks Maximum level : M1 - 650 units M2 - 750 units Calculate for each component: a) Reorder level b) Minimum. level c) Reorder guantitý and d) Average stock level

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The components M1 and M2 are used in the manufacture of an article.
The following. data relate to the components,
Minimum usage: 25 units.per week eạch
Maximum usage: 75 units per week each
Reorder period: M1 -4 to 6 weeks
M2 - 2 to 4 weeks
Maximum level : M1 - 650 units
· M2 - 750 units
Calculate for each component: a) Reorder level b) Minimum. level
c) Reorder quantity and d) Average stock level
Transcribed Image Text:The components M1 and M2 are used in the manufacture of an article. The following. data relate to the components, Minimum usage: 25 units.per week eạch Maximum usage: 75 units per week each Reorder period: M1 -4 to 6 weeks M2 - 2 to 4 weeks Maximum level : M1 - 650 units · M2 - 750 units Calculate for each component: a) Reorder level b) Minimum. level c) Reorder quantity and d) Average stock level
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