Compact Ltd is a retailer of bottled Fruit drinks. The company has an annual demand of 19 000 containers. The container cost 10 each. The ordering costs and the cost of carriage inwards are $150 per order. The annual cost of holding one container in inventory is estimated to be $2.00 Required:

A. Calculate the economic order quantity (EOQ) from the above information.

B. The following data was obtained from a companys records:

Minimum lead time 12 days

Average lead time 16 days

Maximum lead time 24 days

Maximum usage 1600 units per day

Minimum usage 1400 units per day

Re-order quantity 20 000 units

Calculate:

i. Average usage

ii. Reorder level

iii. Minimum Control Level

iv. Maximum Control Level