Question

Maximum usage 300 units
Minimum usage 200 units
Re order period 8 to 10 days
Calculate the re order level

Answer 1

ANSWER :

• ❖ 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.

___________________________________________________________

SOLUTION :

❒ Given :-

• Maximum usage = 300 units

• Minimum usage = 200 units

• Re order period = 8 to 10 days

❒ To Calculate :-

• Re order level = ?

❒ Formula Used :-

• $\dag \: \: \underline{ \boxed{ \rm {\: Re \: order \: \: Level = Maximum \: \: Rate \: \: of \: \: Consumption \times Maximum \: \: Re \: order \: \: Period \: }}}$

❒ Calculation :-

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