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In manufacturing its products, a company uses three raw materials A, B and Cas follows: Raw Usage Reorder Materials per unit quantity Price Delivery per
In manufacturing its products, a company uses three raw materials A, B and Cas follows: Raw Usage Reorder Materials per unit quantity Price Delivery per kg. period in $ weeks Order Minimum level level A 10 10,000 10 1 to 2 8,000 B 4 5,000 30 3 to 5 4,750 6 10,000 15 2 to 4 2,000 Weekly production varies from 175 to 225 units, averaging 200. What would you expect the quantities of the following to be? (i) Minimum stock of A; (ii) Maximum stock of B; and Average stock of A
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