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Amazonia Kakra & Akos Limited manufactures a single product, Taana. One unit of Taana requires 5Kg of Material M1 and 3 Kg of material M2.
Amazonia Kakra & Akos Limited manufactures a single product, Taana. One unit of Taana requires 5Kg of Material M1 and 3 Kg of material M2. The weekly output of Taana varies from 200 to 250 units. The following information relates to M1 and M2.
Delivery Period
Max (Weeks) Min (Weeks) Re order Quantity Maximum level
Material Kg Kg
M1 5 3 8,000
M2 4 2 14,000
You are required to
a. Calculate
i. The minimum stock level of M1
ii. The maximum stock level of M1
iii. The re order level of M2
iv. The re order quantity of M2
v. The minimum stock level of M2
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