Two components A and B are used as follows: Normal usage 50 Units per week each Minimum usage 25 Maximum usage 75 .. Re-order quantity A - 300 Units .. B - 500 Units Re-order period A - 4 to 6 weeks. B- 2 to 4 weeks Calculate for each component: (a) Re-Order level. (b) Minimum level. (c) Maximum level.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Two components A and B are used as follows:
Normal usage
50 Units per week each
Minimum usage
25
Maximum usage
75
Re-order quantity
А- 300 Units
..
B - 500 Units
Re-order period
А - 4 to 6 weeks.
B- 2 to 4 weeks
Calculate for each component:
(a) Re-Order level.
(b) Minimum level.
(c) Maximum level.
Transcribed Image Text:Two components A and B are used as follows: Normal usage 50 Units per week each Minimum usage 25 Maximum usage 75 Re-order quantity А- 300 Units .. B - 500 Units Re-order period А - 4 to 6 weeks. B- 2 to 4 weeks Calculate for each component: (a) Re-Order level. (b) Minimum level. (c) Maximum level.
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