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In respect of a material, you are given the following particulars and requested to calculate the Re-ordering level.

Particulars are

1. Minimum limit-2000 units

2. Maximum limit-7000 units

3. Daily requirement of the materials -200 units

4.Time required for fresh delivery12 days.

 

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Question ajoutée par VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date de publication: 2015/02/10
Mir Mujtaba Ali
par Mir Mujtaba Ali , Internal Audit Manager , Confidential

Re- order level = minimum limit + consumption during the time required for fresh delivery

Re- order level =2000+(200x12) =4,400 units

Wasi Rahman Sheikh
par Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG

Correct answer given by  Mir Mujtaba Ali

Ahmed kandil
par Ahmed kandil , Cost Controller , Battour Holding Cpompany

agree with  Mir Mujtaba Ali 

thank you for invitation 

Kripesh Krishnan Kutty Nair
par Kripesh Krishnan Kutty Nair , Merchandiser , Al Seer Group

Minimum quantity to keep =2000, Daily consumption =200 Maximum delivery time taken =12 days. So12 days consumption + minimum ququantity= minimum re order level. =12*200+2000=4400

nour ibrahim
par nour ibrahim , محاسب ومراجع قانونى , مستقل

Agreed with the sentiments respected professors

Khaled Mohee Eldeen Abbas Mahmoud
par Khaled Mohee Eldeen Abbas Mahmoud , Chartered Accountant # 10465 , Self-employed

I agree to answers of4400 units

Abd ElRahman Mohammed Idris Mohammed
par Abd ElRahman Mohammed Idris Mohammed , Internal Audit Manager , Kenana Sugar Company Limited

Re-ordering level  =  (200*12) +2000 =2400+2000=4400 units

Utilisateur supprimé
par Utilisateur supprimé

Yes I agree;

Min.2000 + (12 days x200) =4400

Ani Kuriakose
par Ani Kuriakose , Managing Partner – SCM , A. A. Associates

I agree with Mujtaba Ali

As minimum level is the level beyond which stock MUST NOT fall.

Min Level = ROL - Lead-time usage

2000 = ROL-2400

ROL=4400. 

Mohamed Farouk
par Mohamed Farouk , Regional Compliance Head of Sanctions and Financial Crimes - Africa , Jumia Group

THE ANSWER IS 

2000(MIN)+(200*12)DAILY REQUIRMENT 

THE TOTAL IS4400

Salam Sleem
par Salam Sleem , assistant account , platinum costraction company

t* = y over d

y = t* x d =12 *200 =2400 ( its foll between the range2000 -7000)

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