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PKA CO (Dec 07) exam kit

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › PKA CO (Dec 07) exam kit

  • This topic has 3 replies, 2 voices, and was last updated 6 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • December 3, 2018 at 2:22 pm #486949
    manishatai
    Member
    • Topics: 35
    • Replies: 21
    • ☆☆

    Hi I have one question when working out the current ordering policy cost. We are told that the annual demand is 625,000, and there are 50 weeks in the year but when working out the ordering cost why do we not work it out using the assumption they place an order once a week? Instead they have used 625,000/100,000 (which is the number of units when the inventory level falls to 35,000.) Thank you

    December 3, 2018 at 3:07 pm #486967
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54709
    • ☆☆☆☆☆

    But the question specifically says that they currently order 100,000 units each time. We cannot simply assume that they order every week 🙂

    Have you watched my free lectures on inventory control??

    December 3, 2018 at 3:14 pm #486971
    manishatai
    Member
    • Topics: 35
    • Replies: 21
    • ☆☆

    Yes but perhaps I need to rewatch it! Thank you 🙂

    December 4, 2018 at 6:52 am #487104
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54709
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘PKA CO (Dec 07) exam kit’ is closed to new replies.

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