• Cost of placing a purchase order is $20
• Number of the units to be purchased during the year is 5,000
• Purchase price per unit inclusive of transportation cost is $50
• Annual cost of storage per unit $5
• Details of lead time: Average 10 days, Maximum 15 days, Minimum 6 days, For emergency purposes 4 days.
• Rate of consumption: Average: 15 units per day, Maximum: 20 units per day

Required:From the details given above, calculate:

Re-ordering level

Maximum Level

Minimum Level

Danger Level