Solution-Calculate reordering level

Calculate reordering level

Assignment Help Cost Accounting

Reference no: EM132835748

Cost of placing an order is $20

Number of the unit to be purchased during the year is $500

Purchasing price per unit inclusive of transportation cost is $50

Annual cost of storage per unit $50

Details of lead time

Average 10days , maximum 15 days, Minimum 6days for emergency purposes 4days

Rate of consumption

Average 15 units per day, maximum 20

Problem 1: Calculate reordering level, maximum level, minimum level and danger level

Reference no: EM132835748

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Calculate reordering level

Reference no: EM132835748

Reference no: EM132835748

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