Question

e)
Danger Level
= A.CxMX RP for EP
= Average rate of consumption per day x Maximu
for emergency purchases in days
= 15 units x 4 days
= 60 units
ILLUSTRATION 2
Two components A and B are used in Swastic Industries, Surat as follows:
Normal Usage 150 units per week each
Minimum Usage: 75 units per week each
Maximum Usage : 225 units per week each
Re-order Quantity: 'A - 900 units
• B-1,500 units
Re-order Period . A-4 to 6 weeks
- B - 2 to 4 weeks
Calculate for each component,
a) Reorder Level, b) Maximum Level. c) Minimum Level. d) Average Stock Le​

Answer 1

Explanation:

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