Toystop Inc. manufactures toys for kids. Following is the data pertaining to one of its parts being used assembly of a s
Posted: Sun Jul 03, 2022 3:50 pm
Toystop Inc. manufactures toys for kids. Following is the datapertaining to one of its parts being used assembly of a specifictoy.
in
Working days per year 300
Normal use per day 550 units
Maximum use per day 600 units
Minimum use per day 150 units
Lead Time 5 days
Variable cost of placing one order (Ordering Cost per order)1,200
Variable Carrying (Storage) cost per unit per year 350
Required:
Calculate the following from the data given above:
Maximum Level of Inventory
Minimum Level of Inventory
Average Level of inventory assuming normal lead time andnormal usage.
in
Working days per year 300
Normal use per day 550 units
Maximum use per day 600 units
Minimum use per day 150 units
Lead Time 5 days
Variable cost of placing one order (Ordering Cost per order)1,200
Variable Carrying (Storage) cost per unit per year 350
Required:
Calculate the following from the data given above:
Maximum Level of Inventory
Minimum Level of Inventory
Average Level of inventory assuming normal lead time andnormal usage.