Accounting Information Systems 7th Edition by Cynthia Heagy,Constance Lehmann

Exercise 12

Pensacola Grocery Wholesalers, which is open 5 days a week, purchases groceries and other items in bulk and sells in small quantities to bait shops, marinas, and small food stores. Several stock items are listed below along with the unit of purchase, stocking unit, and unit of sale.

Other information related to the items is:

Weekly sale rate and committed are expressed in sales units; on hand and reorder point are in stocking units; and on order and EOQ are in purchase units.
Required:
a. Calculate the number of business days the inventory on hand will likely last for each item.
b. Calculate the number of units (cases) that should be ordered for each item.