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MA

Inventory Control (part 4) - Reorder Level - ACCA Management Accounting (MA)

VIVA Subject Guide
YouTube video

24 Comments

  1. THIAN
    Thank you, Sir, I have learnt a lot from your lecture.
  2. Mannan
    Hi sir! would the average inventory not change because of these re-order levels? While explaining the economic batch quantity, you said that the average inventory will not be half of the order quantity because of the delay in goods arriving. so I think the average inventory will not be half the order quantity here also because we will have units left in inventory when the order arrives(for example the case given in example 7 where it says that the reorder level should be such that we never run out of inventory) so maybe the average inventory is always a bit higher than EOQ/2?
  3. John MoffatTutor
    Assuming you do mean the re-order level (as opposed to the re-order quantity) then the average inventory will be EOQ/2 + reorder level.
  4. Hao
    Dear sir,I want to know what does "reorder level minus min demand"(480-210)stand for?
  5. John MoffatTutor
    It doesn't stand for anything :-)
  6. Hao
    OK,I know,thank you very much,dear sir.
  7. Asif
    Thankyou very much for an amazing explanation both in the video and the Notes! Cleared my doubts.
  8. John MoffatTutor
    Thank you for your comment :-)
  9. Entela
    Thank you so much!
    I’m planning to sit on the exam on March and I’m studying from your website and so far I do understand everything from your videos. I’m feeling so confident. Thank you so much!
  10. John MoffatTutor
    Thank you for your comment :-)
  11. Foziljon
    Sir, you make our job easy! Thank you
  12. John MoffatTutor
    Thank you for your comment :-)
  13. Dhiraj
    thanks so much Mr.Moffat
  14. John MoffatTutor
    You are welcome :-)
  15. Lokesh
    I never got a teacher like you so far. I have no doubts when i take your lecture. You made them very Indipendent , if one watches carefully they will not have doubts
  16. Lokesh
    Very Easy , Very Helpful
  17. hamza
    there is no formula or need to calculate min. inve. level, safety inv., free inv. etc?
  18. hamza
    i dont understand the ex 8. the max. inv. level formula is reorder level + reorder quantity - (mix. inventory * min. lead time)
    will you please explain the example 8.
    thanks in advance
  19. John MoffatTutor
    I am not sure what you want explaining, because I explain in the video (and the answer is also printed in the lecture notes).
  20. hamza
    sir, i mean that to calculate max. inve. level there is formula studied in ma2, formula is reorder level + reorder quantity – (mix. inventory * min. lead time).
    but you didn't use the formula, why??
  21. deenanouman
    he did not use the formula but he used different method. I cleared my concepts from here but gonna use that formula in my exam.
  22. brian
    I really love the lectures so far.
    Thanks for the help.
  23. John MoffatTutor
    Thank you for your comment :-)
  24. akhal1l
    No worries, just turned over the page. Sorry.

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