Cost Accounting Question

Cost Accounting Question:

Consider the following data pertaining to a distribution center.

Parameter Value
Mean Weekly Demand 100

Standard Deviation of weekly



Lead Time 2 Weeks
# of weeks in year 50

Ordering cost $50/ order

Holding cost $4/unit/week

Cycle service level 97%

Calculate Order quantity, Cycle inventory, Safety Inventory, Reorder Level, Annual Inventory holding cost, Number of orders per year, Annual ordering cost,



The question is related to cost accounting in finance. It deals with measures such as Order Quantity, Cycle Inventory, Safety Inventory, Reorder Level, Annual Inventory Holding, Annual Ordering Cost, etc. All these measures are calculated according to given cost and time.

Total Word count is 222.

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