Bisi and Co. has the following details about its stocks: Maximum usage 20,000 units Maximum re-order period 3 months Minimum usage 10,000 units Minimum re-order period Normal usage Normal re-order period Re-order quantity You are required to calculate the; i Re-order level Maximum stock level Minimum stock level iv. Average stock level 1 month 15,000 units 2 months 30,000 units

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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Bisi and Co. has the following details about its stocks:
Maximum usage
20,000 units
Maximum re-order period
3 months
Minimum usage
10,000 units
Minimum re-order period
Normal usage
Normal re-order period
Re-order quantity
You are required to calculate the;
i
Re-order level
Maximum stock level
Minimum stock level
iv. Average stock level
1 month
15,000 units
2 months
30,000 units
Transcribed Image Text:Bisi and Co. has the following details about its stocks: Maximum usage 20,000 units Maximum re-order period 3 months Minimum usage 10,000 units Minimum re-order period Normal usage Normal re-order period Re-order quantity You are required to calculate the; i Re-order level Maximum stock level Minimum stock level iv. Average stock level 1 month 15,000 units 2 months 30,000 units
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