Flashcards
MMAC Flashcards for Formulas
Cards in this deck (12)
- 1Chapter 3 Inventory Re-order LevelMax usage × Max lead time + Buffer inventory (if given)
- 2Minimum Order QuantityMinimum inventory level = Reorder level – (Average usage × Average lead time)
- 3Maximum inventory levelMaximum inventory level = Reorder level + Reorder Quantity – (Min usage × Min
lead time) - 4Average inventoryMinimum inventory + ½ Reorder quantity
- 5economic order quantity (EOQEOQ= 2CoD
CH
D = annual demand in units
Co = fixed cost per order
CH = cost of holding one unit for one year - 6Chapter 10 Short Term Decision Making Breakeven pointFixed Costs / Contribution per unit
- 7Margin of safety (units)budgeted sales in units - breakeven sales in units
- 8Margin of safety %budgeted sales units - breakeven sales units / budgeted sales units x 100
- 9Margin of Safety revenuemargin of safety units x Selling price per unit
- 10Target profit sales volumeFixed costs + required profit / contribution per unit
- 11Target profit sales valueFixed Costs + required profit / contribution per unit x sales price per unit
- 12profit volume ratiocontribution per unit / selling price per unit