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Minimum usage -200unit per day Maximum usage -300 unit per day Avreage usage - 250 units per day Re order period-20to30 days Average re order period 25days Re order quantity - 3000units From the above information calculate re order level and minimum level?
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Minimum usage -200unit per day Maximum usage -300 unit per day Avreage...
Reorder Level and Minimum Level Calculation
Reorder level and minimum level are important inventory management terms used to ensure that a business never runs out of stock. The reorder level is the point at which a business should place a new order for inventory, while the minimum level is the minimum amount of inventory that should be maintained at all times to avoid stockouts. Here's how to calculate the reorder level and minimum level for the given information:
Reorder Level Calculation
Reorder level = maximum usage x average reorder period
Reorder level = 300 units x 25 days
Reorder level = 7500 units
Therefore, the reorder level for the given information is 7500 units.
Minimum Level Calculation
Minimum level = average usage x minimum reorder period
Minimum level = 250 units x 20 days
Minimum level = 5000 units
Therefore, the minimum level for the given information is 5000 units.
Conclusion
In conclusion, the reorder level and minimum level are crucial aspects of inventory management that ensure a business never runs out of stock. By calculating these levels, a business can ensure that it has enough inventory to meet customer demand while avoiding stockouts and lost sales. For the given information, the reorder level is 7500 units, and the minimum level is 5000 units.
Reorder level and minimum level are important inventory management terms used to ensure that a business never runs out of stock. The reorder level is the point at which a business should place a new order for inventory, while the minimum level is the minimum amount of inventory that should be maintained at all times to avoid stockouts. Here's how to calculate the reorder level and minimum level for the given information:
Reorder Level Calculation
Reorder level = maximum usage x average reorder period
Reorder level = 300 units x 25 days
Reorder level = 7500 units
Therefore, the reorder level for the given information is 7500 units.
Minimum Level Calculation
Minimum level = average usage x minimum reorder period
Minimum level = 250 units x 20 days
Minimum level = 5000 units
Therefore, the minimum level for the given information is 5000 units.
Conclusion
In conclusion, the reorder level and minimum level are crucial aspects of inventory management that ensure a business never runs out of stock. By calculating these levels, a business can ensure that it has enough inventory to meet customer demand while avoiding stockouts and lost sales. For the given information, the reorder level is 7500 units, and the minimum level is 5000 units.
Community Answer
Minimum usage -200unit per day Maximum usage -300 unit per day Avreage...
Re order =9,000 units , minimum level =2750
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Minimum usage -200unit per day Maximum usage -300 unit per day Avreage usage - 250 units per day Re order period-20to30 days Average re order period 25days Re order quantity - 3000units From the above information calculate re order level and minimum level?
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