Zee Bhd practices proper inventory control to maintain its inventory at the optimum level. Material A is one of the inventory items purchased by the company. The re-order level of Material A is 1,500...


Zee Bhd practices proper inventory control to maintain its inventory at the optimum level.<br>Material A is one of the inventory items purchased by the company. The re-order level of<br>Material A is 1,500 kilograms and the re-order quantity is 1,300 kilograms. The lead time and<br>usage are as follows:<br>Lead time:<br>Usage:<br>Minimum<br>1 week<br>Minimum<br>600 kilograms per week<br>Maximum 800 kilograms per week<br>Average<br>1.5 weeks<br>Maximum<br>2 weeks<br>Required to calculate for Material A:<br>a. Minimum stock level<br>b. Maximum stock level, and<br>c. Average stock level.<br>

Extracted text: Zee Bhd practices proper inventory control to maintain its inventory at the optimum level. Material A is one of the inventory items purchased by the company. The re-order level of Material A is 1,500 kilograms and the re-order quantity is 1,300 kilograms. The lead time and usage are as follows: Lead time: Usage: Minimum 1 week Minimum 600 kilograms per week Maximum 800 kilograms per week Average 1.5 weeks Maximum 2 weeks Required to calculate for Material A: a. Minimum stock level b. Maximum stock level, and c. Average stock level.

Jun 01, 2022
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