Question

the following data are available in respect of material ZM-3
supply period 2-4 months, consumption rate: maximum-300unit per month, minimum-50 unit per month, and annual-1800units.
storage costs are 25% of stock value. ordering costs are rs.200/- price per unit of material at rs. 32/-.
Compute:
1)reorder level
2)Maximum stock level
3) Minimum stock level.

Answer 1

2) maximum stock levels