The following details relate to component 1256:

Maximum usage per day Minimum usage per day Maximum lead time Minimum lead time Ordering cost Stock holding cost Annual demand 10 units 4 units 5 days 3 days

£50 per order

£2 per item per year 1,750 units D 5.800.

CIMA. Stage 1, May 1996 The budget for December 1995 is currently being revised to take account of these details. The stock is budgeted to be 170 units on 1 December, and the production manager has requested that the stock be at maximum on 31 December 1995.

Assuming that the usage of this component is expected to be 140 units during December. the number of units to be purchased during December is closest to A 296 units. B 304 units. C 334 units. D 350 units. E 474 units.

AppendixLO1