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JH Holdings manufactures several products. Recently, there have been many issues with their inventory running out of stock for component Z . Management has decided

JH Holdings manufactures several products. Recently, there have been many issues with their inventory running out of stock for component Z. Management has decided to look closely at inventory levels and estimates:
Lead Time =2 to 4 weeks
Demand =200 to 300 Ounces per week
Holding cost is estimated at 10% of cost.
Cost of placing an order = $5
Cost = $2/ Ounce
Demand =10,000 Ounces per annum
With the above information, calculate the following:
1) Re-order level
2) Economic Order Quantity (EOQ)
3) Minimum level
4) Maximum level
5) Average stock

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