- 5 Marks
FM – L2 – Q108 – Inventory Management
Calculate the average stock level for a component based on usage and lead time data.
Question
Ravens Limited (RV) imports a high-value component for its manufacturing process. The following data, relating to the component, has been extracted from RV’s records for the last twelve months:
| Maximum usage in a month | 300 units |
|---|---|
| Minimum usage in a month | 150 units |
| Average usage in a month | 225 units |
| Maximum lead time | 6 weeks |
| Minimum lead time | 2 weeks |
Required
Calculate the average stock level for the component.
Find Related Questions by Tags, levels, etc.
- Tags: Inventory Management, Lead Time, Reorder Level, Stock Levels, Usage Rates
- Level: Level 2
- Topic: Inventory Management
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