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Forums › ACCA Forums › ACCA MA Management Accounting Forums › Accounting for material
A business uses 65,000 units of an item every year and works for 52 weeks per year. There is a delay of three weeks between placing an order for the item and receiving it.
What should be set as a reorder level to ensure that inventory arrives just it is needed?
Why are you attempting questions for which you do not have an answer? You should be using a Revision Kit from one of the ACCA approved publishers – they have answer and explanations.
You need to calculate how many units they are using each week and then calculate how many they need to last the lead time of 3 weeks.
This is all explained in my free lectures. The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.