s per year 240 Normal lead time in working days 20 Maximum lead time in working days 45 Annual usage 7,200 Assuming that the units of material Y will be required evenly throughout the year, the safety stock and order point would be Safety Stock Order Point a 600 600 b 600 1,350
s per year 240 Normal lead time in working days 20 Maximum lead time in working days 45 Annual usage 7,200 Assuming that the units of material Y will be required evenly throughout the year, the safety stock and order point would be Safety Stock Order Point a 600 600 b 600 1,350
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter2: Accounting For Materials
Section: Chapter Questions
Problem 1E: Order Point Pershing, Inc. expects daily usage of 500 lb of material X, an anticipated lead time of...
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Question
The following information relates to Blueberry Company’s materials Y
Working days per year 240
Normal lead time in working days 20
Maximum lead time in working days 45
Annual usage 7,200
Assuming that the units of material Y will be required evenly throughout the year, the
safety stock and order point would be
Safety Stock Order Point
a 600 600
b 600 1,350
c 750 600
d 750 1,350
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