Find re order level Maximam usage 300units
Minimam usage 200units
Re order period 8to10 days
Answers
Answer:
ANSWER :
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❖ If Maximum usage 300 units, Minimum usage 200 units and Re order period 8 to 10 days; then the Re order Level will be 3000 units.
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SOLUTION :
\begin{gathered} \\ \\ \end{gathered}
❒ Given :-
Maximum usage = 300 units
Minimum usage = 200 units
Re order period = 8 to 10 days
❒ To Calculate :-
Re order level = ?
❒ Formula Used :-
\dag \: \: \underline{ \boxed{ \rm {\: Re \: order \: \: Level = Maximum \: \: Rate \: \: of \: \: Consumption \times Maximum \: \: Re \: order \: \: Period \: }}}†
ReorderLevel=MaximumRateofConsumption×MaximumReorderPeriod
❒ Calculation :-
\begin{gathered} \\ \end{gathered}
Here,
Maximum Rate of Consumption = 300 units
Maximum Re order Period = 10 days
Using the formula, we get,
✪ Re order Level = Maximum Rate of Consumption × Maximum Re order Period
⇒ Re order Level = (300 × 10) units
∴ Re order Level = 3000 units
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