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micky ltd has following information
reorder quantity 2500units
usage per months max 1000units
min 700units
estimated delivery period max 8 weeks
min 4 weeks
calculate:
minimum level?as we know minimum level = reorder level -(average usage x average lead time)
please just explain me how to find average usage and average lead time from above dataI am not a hundred per cent sure of this answer.However, I believe average usage=(1000+700)/2=850
average lead time=(4+8)/2=6 weeks.
Of course usage is given in months which I don’t quite understand as months are not convertible into weeks unless you make assumption of month being equal to 4 weeks as an approximation.I am not a hundred per cent sure of this answer.However, I believe average usage=(1000+700)/2=850
average lead time=(4+8)/2=6 weeks.
Of course usage is given in months which I don’t quite understand as months are not convertible into weeks unless you make assumption of month being equal to 4 weeks as an approximation.Normally this is an assumption I hate seeing used as it can cause huge problems when used in real world applications.Hope this helps.
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