Question 1: Write brief notes on:
a) ABC analysis
b) Economic Order Quantity
c) Perpetual Inventory System
d) Average Method of Pricing Material Issue
e) Purchase requisition
f) Reordering level
g) Bill of Materials and Stores Requisition Not
h) Bin Card
i) Materials Requisition Note and Material Transfer Note
Question 2: The given information is available in respect of material of No. 30:
Re-order quantity = 1,500 units
Re-order period = 4 to 6 weeks
Maximum consumption = 400 units per week
Normal consumption = 300 units per week
Minimum consumption = 250 units per week
Compute:
a) Re-order levels
b) Minimum level
c) Maximum level
d) Average Stock level
Question 3: In manufacturing its product Z, a company employs two kinds of raw materials A and B in respect of which the given information is supplied:
One unit of Z needs 10 kg of A and 4 kg of B materials. Price per kg of material is Rs. 10 and that of B is Rs. 20. Reorder quantities of A and B materials are 10,000 kg and 5,000 kg. Reorder level of A and B materials are 8,000 kg and 4,750 kg correspondingly. Weekly production differs from 175 units to 225 units averaging 200 units. Delivery period of A materials is 1 to 3 weeks and B materials is 3 to 5 weeks.
Calculate:
a) Minimum Stock Level of A
b) Maximum Stock Level of B