Solution-Compute the maximum inventory assuming normal lead

Compute the maximum inventory assuming normal lead time

Assignment Help Cost Accounting

Reference no: EM132628899

Charleston Company has developed the following data to assist in controlling one of its inventory items:

Economic order quantity 1000 liters

Average daily use 100 liters

Maximum daily use 120 liters

Working days per year 250 days

Safety stock 140 liters

Cost of carrying inventory $1.00 per liter per year

Lead time 7 working days

Required:

Problem 1: Compute the following:

Order point
Average inventory
Maximum inventory assuming normal lead time and usage
Cost of placing one order

Reference no: EM132628899

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Compute the maximum inventory assuming normal lead time

Reference no: EM132628899

Reference no: EM132628899

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