ZEE is product manufactured out of three raw materials M, N and Q. Each unit of ZEE

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ZEE is product manufactured out of three raw materials M, N and Q. Each unit of ZEE requires 10 kg, 8 kg, and 6 kg. of M, N and Q respectively. The re-order levels of M and N are 15,000 kgs and 10,000 kg. respectively while the minimum-level of Q is 2,500 kg. The weekly production of ZEE varies from 300 to 500 units, while the weekly average production is 400 units. You are required to compute
(i) The minimum stock level of M.
(ii) The maximum stock level of N, and
(iii) The re-order level of Q.
The following additional data are given:

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Cost Accounting

ISBN: 9780070221628

4th Edition

Authors: Jawahar Lal, Seema Srivastava

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