Question

The followingn information is available in respect of consumption D- 20 Maximum stock level 8,400 units Budgeted consumption Maximum 1,500 units/ month Budgeted consumption Minimum 800 units/ month Estimated delivery period Maximum 4 months Estimated delivery period Minimum 2 months Calculate Reorder period Reorder quantity

Answer 1

Answer:

When to Order?

This problem of inventory control deals with the point of time when the order for fresh inventory is

to be given. The problem of ‘when to order’ is solved by fixing the appropriate re-order level of each

type of inventory. It is determines by compromising the cost of maintaining these stocks and the

disservice to the customer if this order are not delivered in time.

Explanation:

Answer 2

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