Question

From the following calculate :
(a) Maximum stock level;
(b) Minimum stock level;
(c) Re-order level;

Minimum consumption 240 units per day Normal consumption 300 units per day Maximum consumption 420 units per day Re-order quantity 3600 units
Re-order period 10 to 15 days Normal order period 12 days.​

Answer 1

Answer:

Quantity – (Minimum Consumption x Reorder period) = 3,000 + 1,600 – (120 X 10) = 3,000 + 1,600 – 1,200 = 2,400 units.