Tuafi Investments CC is a company that ventured into manufactures bricks for the low-income housing. Its operations are at an infant stage. The economic order quantity is 12 000 kg. However, the store administrator plans for the company’s inventory requirements since the brick formation requires 50 kg of cement, sand and water. The following details relating to company inventory: Lead time 7 to 13 working days Minimum usage 400 kilogram per day Average usage 600 kilogram per day Maximum usage 200 percent of Minimum usage Assume the store administrator orders 800 kg of cements each order during the year, and the annual requirement is 19 600 kg.
Tuafi Investments CC is a company that ventured into manufactures bricks for the low-income housing. Its operations are at an infant stage. The economic order quantity is 12 000 kg. However, the store administrator plans for the company’s inventory requirements since the brick formation requires 50 kg of cement, sand and water. The following details relating to company inventory: Lead time 7 to 13 working days Minimum usage 400 kilogram per day Average usage 600 kilogram per day Maximum usage 200 percent of Minimum usage Assume the store administrator orders 800 kg of cements each order during the year, and the annual requirement is 19 600 kg.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Tuafi Investments CC is a company that ventured into manufactures bricks for the low-income housing. Its operations are at an infant stage. The economic order quantity is 12 000 kg. However, the store administrator plans for the company’s inventory requirements since the brick formation requires 50 kg of cement, sand and water. The following details relating to company inventory: Lead time 7 to 13 working days Minimum usage 400 kilogram per day Average usage 600 kilogram per day Maximum usage 200 percent of Minimum usage Assume the store administrator orders 800 kg of cements each order during the year, and the annual requirement is 19 600 kg.
Determine the reorder Level
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