Calculate Re-order level from the following: Consumption per week: 100-200 units Delivery period: 14-28 days (a) 5600 units (b) 800 units (© 1400 units (d) 200 units
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To calculate Re-order level-
Given:
consumption per week - 100-200 units
delivery period - 14 - 28 days
To find:
maximum delivery time= 28 days= 4 week
maximum consumption per week =200 units
Re-order level = maximum delivery time×maximum consumption
Re-order level =4 week×200 units per week
Re order level =800 units
Solution:
Re order level= 800 units
(b) 800 units
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