Question: What is the ordering level for material A? (Material A and B are used as follows: Minimum usage- 10 units each per week Maximum usage-

What is the ordering level for material A? (Material A and B are used as follows: Minimum usage- 10 units each per week Maximum usage- 30 units per week Normal usage - 20 units per week Ordering quantity A= 120 units, B= 200 units Delivery period A=4-6 weeks, B= 2-4 weeks Calculate for each material (1) maximum level (2) minimum level (3) ordering level.)(Use the following details to solve the questions from Q no.4 to Q no.9.)

150 units

180 units

200 units

210 units

What is the minimum level for materials A?

20 units

40 units

80 units

90 units

Calculate maximum level for material A?

200 units

260 unit

300 unit

500 unit

What is the ordering level for material B?

100 units

120 units

150 units

200 units

What is the minimum level for material B?

30 units

60 units

90 units

120 units

Calculate maximum level for material B?

200 units

300 units

400 units

500 units

What is the formula for calculating Economic order quantity?

EOQ= 2U*P/S

EOQ= 2U*S/P

EOQ=2S*P/Q

EOQ=2Q*S/P

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

1 Material A Maximum Level Reordering Level Maximum Consumption Maximum Delivery Period Reordering L... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

Materials X and Y are used as follows: Calculate for each material : (a) Minimum level; (b) Maximum level; and (c) Order level. Minimum usage - 50 units each per week Maximum usage - 150 units each...

Two components, A and B are used as follows: Calculate for each component: (a) Re-order level, (b) Minimum level, (c) Maximum level, and (d) Average stock level. Normal usage Minimum usage Maximum...

An operations manager wants to examine the effect of air-jet pressure (in pounds per square inch [psi]) on the breaking strength of yam. Three different levels of air-jet pressure are to be...

Decide in each case whether the hypothesis is simple or composite: (a) The hypothesis that a random variable has a gamma distribution with = 3 and = 2; (b) The hypothesis that a random variable has...

The following data are for the number of miles per gallon 12 different cars get and the number of miles from home each car owner plans to drive for his or her vacation destination this year. Compute...

Summarize major issues that can arise when psychologists conduct forensic evaluations.

Read the mini-case on Rubio's, and answer the questions given. Rubio's is a fast food restaurant that specializes in fish tacos. Based out of Carlsbad, California, Rubio's has 180 locations, all of...

Shoe Shock Innovations manufactures athletic shoe inserts that cushion the foot and reduce the impact of exercise on the joints. The company has two divisions, Sole Inserts and Heel Inserts. A...

You have just been hired as a brand manager at Kelsey-White, an American multinational consumer goods company. Recently the firm invested in the development of K-W Vision, a series of systems and...

If fixed costs are $305,000, the unit selling price is $72, and the unit variable costs are $47, what are the old and new break-even sales in units (rounded to a whole number) if the unit selling...

Case Study: The mobile phone industry The mobile phone industry case is contained in the two Economist articles, "Battling for the palm of your hand" and "Upwardly mobile". Link:...

Jack and Jill recently negotiated a rate of 2% on their mortgage loan that has a 5-year term and 25-year amortization period. The Bank of Canada 5-year benchmark mortgage rate is 4.8%. What would be...

Question 15 Which premise doesn't address accident prevention? Accidents are always human error. O Accidents have causes. Accidents involve hazards that lead to unsafe acts and conditions. Accidents...

When analyzing the poetry of Marianne Moore, Donald Hall claims that in her view, "The raw material for poetry abounds, it is everywhere, is anything." How does the poetry of Moore and Plath express...

An imaginary object moves horizontally. The position-versus-time function represents the object's motion mathematically. Work together with your group, and when you're done or if you get stuck,...

The following monthly data in contribution format are available for Rhys Company and its only product, Product SD: Total Per Unit Sales $83,700 $279 Variable expenses 32,700 109 Contribution margin...

Read the Forecasting Supply Chain Demand Starbucks Corporation case in your text Operations and Supply Chain Management on pages 484-485, then address the four questions associated with the...

Convert the following program to a precedence graph: S1; [[S2; S3||S4; S5 ||S6]||S7]; S8

You are required to evaluate a polynomial Design a DCDL algorithm with n processes. Assume that initially P i (0 i ao+ax +

2. UA and DU are setting up their strategies for the 1994 national championship college basketball game. Assessing the strengths of their respective "benches," each coach comes up with four...