Business Studies, asked by s8113876323, 1 day ago

29. Reorder quantity 2000 units, Lead time 4-8 weeks, Usage - maximum 500 units per week Normal usage 400 units per week, Minimum usage 300 units per week. The maximum stock level is ?!​

Answers

Answered by sivdata
2

Explanation:

(i) Maximum Consumption = 200 units per day

(ii) Minimum Consumption = 120 units per day

(ii) Normal Consumption =160 units per day

(iv) Reorder period = 10-15 days

(v) Reorder quantity = 1,600 units

ADVERTISEMENTS:

(vi) Normal reorder period = 10 days.

Solution:

Reordering Level = Maximum Consumption x Maximum Reorder period

= 200 units X 15 = 3,000 units Minimum Stock Value = Reordering Level – (Normal Consumption x Nominal Reordering Period)

= 3,000 – (160 X 10) = 3,000 – 1,600 = 1,400 units

Maximum Stock Level = Reordering Level + Reorder Quantity – (Minimum Consumption x Reorder period) = 3,000 + 1,600 – (120 X 10) = 3,000 + 1,600 – 1,200 = 2,400 units.

Answered by Anonymous
4

Given:

Reorder quantity = 2000 units

Maximum units = 500

Normal units = 400

Minimum units = 300

Lead time = 4-8 weeks

To Find:

The maximum stock level

Solution:

To determine maximum stock level, other quantities are to be calculated, thus -

Re order level = Max consumption x Max reorder period

= 500 x 8

= 4000

Minimum level = Reorder level - ( Average consumption x Average reoder period)

= 4000 - ( 400 x 6)

= 4000 - 2400

= 1600

Maximum stock level = Reorder level + reorder quantity - ( Min consumption x Min reorder period)

= 4000 + 2000 - ( 300 x 4)

= 6000 - 1200

= 4800

Answer: The maximum stock level is 4800 units

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