ZEE is a manufacturer of a product out of three raw materials M, N and Q. Each unit of Zee product requires 10, 8 and 6 kg of M, N and Q respectively.

The re–order levels of M and N are 15,000 and 10,000 kg respectively, while the minimum level of Q is 2,500 kg. The weekly production of ZEE varies from 300 to 500 units, while the weekly average production is 400 units. You are required to compute:

(a) Minimum stock level of M

(b) Maximum stock level of N

(c) Re–order quantity of Q The following additional data are given to you:

Transcribed Image Text:

M _ N Q Reorder quantity (in kg) Delivery in weeks: Minimum Average Maximum 20,000 15,000 20,000 2 4 3 3 5 4 4 6 5