You have just been appointed as financial manager of Slow-Moving-Stock Limited. One of your main focus...

 

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You have just been appointed as financial manager of Slow-Moving-Stock Limited. One of your main focus areas is to improve the inventory management system that the company currently has in place. You have extracted the following records from the Inventory Management Software. ITEM X4355 January February March April May June July August September October November December Normal days for delivery Maximum days for delivery Cost of placing an order Carrying cost of a unit per year Total Sales (u) 1500 1300 1200 1100 1100 1100 1500 1600 1700 1800 2500 1900 18300 5 8 R850 R250 Trading days a) Determine and comment on the inventory days ratio. (5 marks) b) Determine the appropriate reorder level for Item X4355. (6 marks) c) Determine the Economic order quantity for Item X4355. (3 marks) 20 18 20 2222DEDPI POGO 19 20 21 22 20 20 21 22 240 You also found that total purchases for all items for the year was R55 000 000 with the end of year inventory value being R26 000 000. You have just been appointed as financial manager of Slow-Moving-Stock Limited. One of your main focus areas is to improve the inventory management system that the company currently has in place. You have extracted the following records from the Inventory Management Software. ITEM X4355 January February March April May June July August September October November December Normal days for delivery Maximum days for delivery Cost of placing an order Carrying cost of a unit per year Total Sales (u) 1500 1300 1200 1100 1100 1100 1500 1600 1700 1800 2500 1900 18300 5 8 R850 R250 Trading days a) Determine and comment on the inventory days ratio. (5 marks) b) Determine the appropriate reorder level for Item X4355. (6 marks) c) Determine the Economic order quantity for Item X4355. (3 marks) 20 18 20 2222DEDPI POGO 19 20 21 22 20 20 21 22 240 You also found that total purchases for all items for the year was R55 000 000 with the end of year inventory value being R26 000 000.

Answer rating: 100% (QA)

a Deter mine and comment on the inventory days ratio 5 marks ANS WER In ventory days ratio 26 000 00... View the full answer