(b) Ace Ltd. manufactures a product and the following particulars are collected for the year ended March, 2018: Monthly demand (units) 250 Cost of placing an order (') 100 Annual carrying cost (` per unit) 15 Normal usage (units per week) 50 Minimum usage (units per week) 25 Maximum usage (units per week) 75 Re-order period (weeks) 4-6 You are required to calculate: (i) Re-order quantity (ii) Re-order level (iii) Minimum level

(b) Ace Ltd. manufactures a product and the following particulars are collected for the year ended March, 2018: Monthly demand (units) 250 Cost of placing an order (') 100 Annual carrying cost (` per unit) 15 Normal usage (units per week) 50 Minimum usage (units per week) 25 Maximum usage (units per week) 75 Re-order period (weeks) 4-6 You are required to calculate: (i) Re-order quantity (ii) Re-order level (iii) Minimum level

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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