Question 4
(a). Enumerate four items found in a first aid box.
(b). KYJ Ltd obtained the following from its records for the first quarter 2019.
Maximum usage = 520
Minimum usage = 400
Maximum lead time = 20 days
Minimum lead time = 10 days
Re-order quantity = 10,000 units
You are required to calculate:
(a) .Re-order stock level;
(b). Minimum stock level;
(c). Maximum stock level;
(d). Average stock level.
Observation
Few candidates attempted this question and performed brilliantly well.
The responses expected from candidates are:
4(a) Items found in a first aid box:
i. Disinfectant.
ii Analgesice.g ( paracetamol or panadol)
iii. Adhesive bandages.
iv. Scissors.
v. Antiseptic solution.
vi. Alcohol wipes or ethyl alcohol.
vii. Calamine lotion.
viii. Cotton wool.
ix. Razor blade.
x. Antiseptic wipes.
xi. Soap and detergent.
xii. Safety pins.
xiii. Thermometer.
xiv. First aid manual.
xv. Methylated spirit.
xvi. Plaster
xvii. Iodine
xviii. Glucose
xix. GV(Gentian Violet solution)
xx. Inhaler
(b) i Re-order level
ROL =Maximum usage x Maximum lead time (Max Re-order Period)
= 520 x 20
=10,400units
ii. Minimum stock level
= ROL – (Average usage x Average delivery period)
= 10,400 – (460 x15)
= 10,400 – 6,900
= 3,500 units
iii Maximum stock level
= ROL + Re-order quantity – (Minimum usage x Minimum delivery period)
= 10,400 + 10,000 – (400 x10)
= 20,400 – 4,000
= 16,400 units
iv Average stock level
= Maximum stock level + Minimum Stock level
2
= 16,400 + 3,500
2