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8. The following information is available in respect of a particular material: Re-order quantity 7,200 units Maximum consumption 1800 units per week Minimum consumption 600
8. The following information is available in respect of a particular material: Re-order quantity 7,200 units Maximum consumption 1800 units per week Minimum consumption 600 units per week Normal consumption 1200 units per week Re-order period 3 to 5 weeks Calculate the following: (a) Re-order level, (b) Minimum stock level, (c) Maximum stock level (d) Average stock level 9. In a manufacturing company, a material is used as follows: Maximum consumption -6000 units per week Minimum consumption - 2,000 units per week Normal consumption - 4,000 units per week Re-order quantity - 24,000 units Time required for delivery-Minimum: 4 weeks, Maximum: 6 weeks Maximum reorder period for emergency purposes is 2 weeks Calculate: (a) Re-order level; (b) Minimum level; (c) Maximum level; (d) Danger level; and (e) Average stock level
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