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ILLUSTRATION 1 ZEE' is product manufactured out of three raw materials 'M', 'N' and Q. Each unit of ZEE requires 10 Kgs., 8 Kgs. and
ILLUSTRATION 1 ZEE' is product manufactured out of three raw materials 'M', 'N' and Q. Each unit of ZEE requires 10 Kgs., 8 Kgs. and 6 Kgs., of M, N and Q respectively. The re-order levels of 'M' and 'N' are 15,000 Kgs. and 10,000 Kgs. respectively while the minimum level of 'Q' is 2,500 Kgs. The weekly production of ZEE varies from 300 to 500 units, while the weekly average production is 400 units. You are required to compute (i) the minimum stock level of M, (ii) the maximum stock level of N, and (iii) the re-order level of Q. Following additional data are given: M N Re-order Quantity (in Kgs.) 20,000 15,000 20,000 Delivery (in Weeks) Minimum 2. 4 3 Average 3 5 4 Maximum 4 6 5
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