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The following information was extracted from the books of Danex Holdings regarding its stocks:

The following information was extracted from the books of Danex Holdings regarding its stocks:
danex117420191026.png

Determine the following stock levels for Danex Holdings:
i. Re-order level
ii. Maximum stock level
iii. Minimum stock level

Answers

Wilfred
i) Re-order level = Maximum consumption X maximum reorder period
= 450 units X 5 weeks = 2,250 units

ii) Maximum stock level = reorder level + reorder quantity- (Minimum consumption X minimum reorder period)
= 2250 + 1800 – (150 X3) = 4050 – 450 = 3600 units

iii) Minimum stock level = Reorder level – (Normal consumption X normal reorder period)
= 2,250 – (300 X 4) = 2250 – 1200 = 1050 units
Wilfykil answered the question on April 17, 2019 at 07:28

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