Storage costs are 25% per annum of stock value. Ordering costs are K20,000 per order. Price...

Transcribed Image Text:

Storage costs are 25% per annum of stock value. Ordering costs are K20,000 per order. Price per unit of material is K3,200. You are required to calculate (a) Reorder level (b) Economic Order Quantity (EOQ) (c) Minimum stock level (3 Marks) (3 Marks) (3 Marks) (d) Maximum stock level (3 Marks) (e) Average stock level (3 Marks) (2) The following information relate to product X Weeks Units Costs 1 200 3,500 2 300 4,000 3 400 5,200 4 500 6,800 5 600 7,800 6 700 8,900 7 800 9,100 Find the total costs of producing 550 units using (i) the High Low (range) method (ii) Linear Regression Method (4 Marks) (6 Marks) [Total 25 marks] Storage costs are 25% per annum of stock value. Ordering costs are K20,000 per order. Price per unit of material is K3,200. You are required to calculate (a) Reorder level (b) Economic Order Quantity (EOQ) (c) Minimum stock level (3 Marks) (3 Marks) (3 Marks) (d) Maximum stock level (3 Marks) (e) Average stock level (3 Marks) (2) The following information relate to product X Weeks Units Costs 1 200 3,500 2 300 4,000 3 400 5,200 4 500 6,800 5 600 7,800 6 700 8,900 7 800 9,100 Find the total costs of producing 550 units using (i) the High Low (range) method (ii) Linear Regression Method (4 Marks) (6 Marks) [Total 25 marks]

Answer rating: 100% (QA)

a Reorder Level Reorder Level Average Daily Usage Lead Time Safety Stock Given Average Daily Usage A... View the full answer