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The standard EOQ model supposes that materials can be procured immediately and thus implies that the firm may place an order for replenishment as the inventory level drops to zero. In the real world, although, procurement of materials takes time and thus the order level must be such the inventory at the time of ordering suffices and meets the requirements of production during the procurement period termed is also termed as Lead Time.
If the usage rate of materials and the lead time for procurement are identify with positively then the ordering level would easily as:
Lead-time in days for procurement X Average daily usage
As the usage rate and lead time are probable to vary: the reorder level must be higher than the normal consumption period need throughout the procurement period so as to provide a measure of safety in the face of variability of lead time and usages. Places differently, the reorder level must be equal to as:
Normal consumption + Safety stock
The statement of comprehensive income for the year ended 31 December 2009 and its comparative is shown below: 2009 2008 $m
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Consider a multinational listed company that has recently carried out an acquisition. You may also select a company that carried out an acquisition long ago as long as there is inf
Q. Define Constant working capital? The supposition of constant working capital should be investigated. Net working capital is probable to increase in line with sales and so ad
received 16,000 contribution in exchange for common stock
what is the definition?
Effect of disclaimer The trustee may disclaim onerous property consisting of: Land burdened with onerous covenants; Stocks and shares; Unprofitable contracts, or
Oswald Corporation reported the following information on operations for 2009: Revenue = $2,000 Cost of goods sold = $850 Operating expenses =$395 Depreciation =$248
explain the terms recording,classifying,summarizing and communicating
The non current asset section of Aadil & Co. at December 31, 2005 is as under:- Land Rs. 1,000,000 Office equipment Rs. 5,000,000 Less: accumulated depreciation 250,000 4,75
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