Cost And Management Accountıng Deneme Sınavı Sorusu #1371346

ABC Company produces heating spirals for refrigerators. The daily use of raw material is 350 kg. Lead time is 3 days and the management determined the safety stock level as 60 kg. Calculate the order point for the material.


410 kg

700 kg

810 kg

1.110 kg

1.200 kg


Yanıt Açıklaması:

The daily usage of raw material is 350 kg. With the lead time taken into calculation (3 days), the total amount will be 1.050 kg (350x3). Safety stock is predetermined as 60 kg. So, when lead time and safety stock is considered 1.050 kg + 60 kg = 1.110 kg The company should reorder raw material when the material on hand decreases to 1.110 kg.

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