23. The solution in a simplified way Manar Enterprises manufactures a product A....
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Accounting
23. The solution in a simplified way
Manar Enterprises manufactures a product A. The following particulars are given for Material X used for producing product A for the year 2021 Monthly demand of 5000 units = Cost of placing an order OMR 75 Annual carrying cost per unit OMR 125 Storage cost = 20 % Normal usage 600 units per week Maximum usage 700 units per week Minimum usage 400 units per week Reorder period 4 to 6 weeks Compute from the above: (a) EOQ (b) Reorder level, (c) Minimum level, (d) Maximum level, (e) Average stock level
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