From the details given below, calculate:

(i) Re–ordering level

(ii) Maximum level

(iii) Minimum level

(iv) Danger level Re–ordering quantity is to be calculated based on following information:

Cost of placing a purchase order is Rs. 20.

Number of units to be purchased during the year is 5,000.

Purchase price per unit inclusive of transportation cost is Rs. 50.

Annual cost of storage per unit is Rs. 5.

Transcribed Image Text:

Details of lead time: Average 10 days Maximum 15 days Minimum 6 days For emergency 4 days Rate of consumption average Maximum: 20 units 15 units per day