Amount of safety stock , Accounting Basics

The injection molding department of a company uses an average of 30 gallons of special lubricant a day. The supply of the lubricant is replenished when the amount on hand is 170 gallons. It takes four days for an order to be delivered. Safety stock is 50 gallons, which provides a stockout risk of 9 percent. What amount of safety stock would provide a stockout risk of 3 percent? Assume normality. 

Posted Date: 3/16/2013 2:06:39 AM | Location : United States







Related Discussions:- Amount of safety stock , Assignment Help, Ask Question on Amount of safety stock , Get Answer, Expert's Help, Amount of safety stock Discussions

Write discussion on Amount of safety stock
Your posts are moderated
Related Questions
After going through this section, you should be capable to: Appreciate the needs for a conceptual framework of accounting; understand and appreciate the Generally Accept

Q. Explain Accounting entity concept? Business entity concept (or accounting entity concept). Data assemble in an accounting system relates to a specific business unit or entit

Business is an activity performed with the only intention of earning profit. The activity may differ according to the scope and volume.

Q. Income statements - Service and merchandising company? We evaluate the main divisions of an income statement for a service company with those for a merchandising company. To

Q. What is invoice? An invoice is a document prepared by the seller of merchandise as well as sent to the buyer. The invoice contains the details of a sale such like the number

State about the Balance Sheet columns of worksheet Balance Sheet columns of worksheet would comprise the amounts from Adjusted Trial Balance columns which are assets, capital,

What is uses of Purchases journal Purchases journal (SPECIAL JOURNAL) Used to record only credit purchases of merchandise-may be only one column which is posted to two accou


A user buys a new transponder for $20. What debit and credit entries would need to be made?

started in business with cash 16,000