Solved: What level of stocks would a replenishment order be issued, Financial Accounting

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What level of stocks would a replenishment order be issued

A domestic appliance retailer with multiple outlets stocks a popular toaster known as the Autocrisp 2000, for which the following information is available:

Average sales	75 per day
Maximum sales	95 per day
Minimum sales	50 per day
Lead time	12-18 days
Re-order quantity	1750

(i) Based on the data above, at what level of stocks would a replenishment order be issued?

A 1050 B 1330 C 1710 D 1750

(ii) Based on the data above, what is the maximum level of stocks possible?

A 1750 B 2860 C 3460 D 5210

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Financial Accounting: What level of stocks would a replenishment order be issued

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