V Ltd. is the manufacturer of picture tubes for TV. The following are details of their operation. Minimum usages 50 tubes per week, Maximum usages 200 tubes per week; Normal usages 100 tubes per week; lead time to supply

CS Executive · Cost and Management Accounting · PYQS · June 2019
V Ltd. is the manufacturer of picture tubes for TV. The following are details of their operation. Minimum usages 50 tubes per week, Maximum usages 200 tubes per week; Normal usages 100 tubes per week; lead time to supply 4-6 weeks; and Re-order quantity 400 tubes. What would be the maximum and minimum level of stock?
(A) 1400 units and 700 units
(B) 1200 units and 700 units
(C) 1300 units and 600 units
(D) 1100 units and 600 units

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Material Cost

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