Page 109 - F2 - MA Integrated Workbook STUDENT 2018-19
P. 109
Accounting for materials
Test your understanding 5
The demand for a particular product is expected to vary between 10 and 50
units per day. Lead time is, on average, 5 days, although it has been as short
as 3 days and as long as 10 days. The company orders 1,500 units a time.
The company operates a 300-day year.
Calculate the maximum and minimum inventory levels
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