Question

Calculate:
A) Re order level
B) Maximum level
C) minimum level
Normal usage : 100 units per day
Minimum usage : 60 units per day
Maximum usage : 130 units per day
EQQ : 5000 units
Re order period: 25-30 days..​

Answer 1

Answer:

A) Re order level = 3,900 units.

B) Maximum level = 7,400 units.

C) Minimum level = 1,200 units.

Explanation:

A) Re-order level = Maximum consumption × Maximum Re-order period.

130 units × 30 days = 3,900 units.

B) Maximum level = Re-order quantity/EOQ + Re-order level - (Minimum consumption × Minimum order period)

5000 units + 3,900 units - (60units × 25 days)

8900 units - 1,500 units

7,400 units.

C) Minimum level = Re order level - (Normal consumption × Normal order period)

3,900 units - (100 units × 27 days)

3,900 units - 2,700 units

1,200 units.

Normal order period =

25 days + 30 days/2

27.5 days.

27 days(for calculation)

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Answer 2

Answer:

yes

Explanation:

Calculate:

A) Re order level

B) Maximum level

C) minimum level

Normal usage : 100 units per day

Minimum usage : 60 units per day

Maximum usage : 130 units per day

EQQ : 5000 units

Re order period: 25-30 days..