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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Accounting for materials-maximum level
data relating to one particular stores item are as follows:
average daily issue 70 units
maximum daily issues 90 units
minimum daily issues 50 units
lead time for the replenishment of stock 11 to 17 days
reorder quantity 2000 units
reorder level 1800 units
what is the maximum stock level (in units) for this stores item?
A.2950 B.3100 C.3250 D.3800
my working:
reorder level : 90 x 17 = 1530 units
maximum level : 1530+2000-(11×50) = 2980 units
please help why not get the correct answer is C.3250 ? thank you
Because the maximum level is the reorder level (1800) less the minimum issues over the lead time (11 x 50) plus the reorder quantity (2,000)