Business, 27.05.2020 03:02 florochoa217

Product type= Fez
unit in store=25
price per unit in store=2.25
minimum weekly sales=26
normal weekly sales=28
maximum weekly sales=30
AL-FAIDA Ltd is a retail company operating within the TIJANIYA enclave. AL-FAIDA has been reviewing the adequacy of its stock control systems. During a period of such review, one product were identified for further investigations.

Gross margin is expressed as a % of sales and given as follows for each product:

Fez = 42

Gross margin = sales – purchase price of product.

There are 6 trading days per week. All orders are delivered by suppliers into the central warehouse. The lead time is one week from the time order is placed. A further week is required by the retailer in order to transfer stock from central warehouse to stores. Both of these lead times can be relied upon.

Required:

Calculate for each product:

i. the minimum and maximum weekly sales units

ii. the stock re-order level
iii. the maximum stock control level

Show all workings.

Answers: 1

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Product type= Fez
unit in store=25
price per unit in store=2.25
minimum weekly sales=...

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