a)

Sabah Enterprises manufactures a special product X The following particulars were collected for the year 2019.

Monthly demand of X, 10,000 units

Cost of placing an order OMR 100

Annual carrying cost per unit OMR 150

Normal usage 500 units per week

Maximum usage 750units per week

Minimum usage 250 units per week

Reorder period 4 to 6 weeks

Compute from the above: (a) Reorder quantity, (b) Reorder level, (c) Minimum level, (d) Maximum level, and (e) Average stock level.

b)

In a manufacturing company, a material is used as follows:

Maximum consumption -12,000 units per week

Minimum consumption - 4,000 units per week

Normal consumption - 8,000 units per week

Re-order quantity - 48,000 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.

c)

From the following data given by the personnel department, calculate the labour turnover rate by applying

a. Separation Method b. Replacement Method c. Flux Method

Number of workers on pay roll:

At the beginning of the month 800

At the end of the month 1,200

During the month, 15 workers left, 35 workers were discharged and 160 workers were recruited. Of these, 25 workers are recruited in the vacancies of those leaving, while the rest were engaged for an expansion scheme.