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Calculate minimum level, maximum level, order level and average stock level of k material from the following 1)consumption per day : minimum 40units, maximum 70 units 2)re order quantity : 800 units 3) lead time : minimum 8 days, maximum 12 days?
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Minimum Level, Maximum Level, Order Level, and Average Stock Level Calculation for Material K
Consumption per Day
- Minimum consumption per day: 40 units
- Maximum consumption per day: 70 units
Reorder Quantity
- Reorder quantity: 800 units
Lead Time
- Minimum lead time: 8 days
- Maximum lead time: 12 days
Minimum Level Calculation
- Minimum level = (minimum consumption per day x minimum lead time)
- Minimum level = (40 units/day x 8 days)
- Minimum level = 320 units
Maximum Level Calculation
- Maximum level = (maximum consumption per day x maximum lead time) + reorder quantity
- Maximum level = (70 units/day x 12 days) + 800 units
- Maximum level = 1640 units
Order Level Calculation
- Order level = maximum consumption per day x reorder period
- Order level = 70 units/day x (8-12 days)
- Order level = 560 - 840 units
Average Stock Level Calculation
- Average stock level = (minimum level + maximum level) / 2
- Average stock level = (320 units + 1640 units) / 2
- Average stock level = 980 units
Explanation
- Minimum level is the minimum amount of stock required to prevent stockout during the lead time.
- Maximum level is the maximum amount of stock required to prevent overstocking during the lead time plus the reorder quantity.
- Order level is the amount of stock to be ordered when the stock level reaches the reorder point.
- Average stock level is the average of minimum and maximum stock levels.
- These calculations are important for inventory management to avoid stockouts and overstocking, and to ensure that the business has enough stock to meet customer demand.
Consumption per Day
- Minimum consumption per day: 40 units
- Maximum consumption per day: 70 units
Reorder Quantity
- Reorder quantity: 800 units
Lead Time
- Minimum lead time: 8 days
- Maximum lead time: 12 days
Minimum Level Calculation
- Minimum level = (minimum consumption per day x minimum lead time)
- Minimum level = (40 units/day x 8 days)
- Minimum level = 320 units
Maximum Level Calculation
- Maximum level = (maximum consumption per day x maximum lead time) + reorder quantity
- Maximum level = (70 units/day x 12 days) + 800 units
- Maximum level = 1640 units
Order Level Calculation
- Order level = maximum consumption per day x reorder period
- Order level = 70 units/day x (8-12 days)
- Order level = 560 - 840 units
Average Stock Level Calculation
- Average stock level = (minimum level + maximum level) / 2
- Average stock level = (320 units + 1640 units) / 2
- Average stock level = 980 units
Explanation
- Minimum level is the minimum amount of stock required to prevent stockout during the lead time.
- Maximum level is the maximum amount of stock required to prevent overstocking during the lead time plus the reorder quantity.
- Order level is the amount of stock to be ordered when the stock level reaches the reorder point.
- Average stock level is the average of minimum and maximum stock levels.
- These calculations are important for inventory management to avoid stockouts and overstocking, and to ensure that the business has enough stock to meet customer demand.
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Calculate minimum level, maximum level, order level and average stock level of k material from the following 1)consumption per day : minimum 40units, maximum 70 units 2)re order quantity : 800 units 3) lead time : minimum 8 days, maximum 12 days?
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Calculate minimum level, maximum level, order level and average stock level of k material from the following 1)consumption per day : minimum 40units, maximum 70 units 2)re order quantity : 800 units 3) lead time : minimum 8 days, maximum 12 days? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Calculate minimum level, maximum level, order level and average stock level of k material from the following 1)consumption per day : minimum 40units, maximum 70 units 2)re order quantity : 800 units 3) lead time : minimum 8 days, maximum 12 days? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Calculate minimum level, maximum level, order level and average stock level of k material from the following 1)consumption per day : minimum 40units, maximum 70 units 2)re order quantity : 800 units 3) lead time : minimum 8 days, maximum 12 days?.
Calculate minimum level, maximum level, order level and average stock level of k material from the following 1)consumption per day : minimum 40units, maximum 70 units 2)re order quantity : 800 units 3) lead time : minimum 8 days, maximum 12 days? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Calculate minimum level, maximum level, order level and average stock level of k material from the following 1)consumption per day : minimum 40units, maximum 70 units 2)re order quantity : 800 units 3) lead time : minimum 8 days, maximum 12 days? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Calculate minimum level, maximum level, order level and average stock level of k material from the following 1)consumption per day : minimum 40units, maximum 70 units 2)re order quantity : 800 units 3) lead time : minimum 8 days, maximum 12 days?.
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