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ILLUSTRATION 6 From the details given below, CALCULATE: (i) Re-ordering level (ii) Maximum level (iii) Minimum level (iv) Danger level. Re-ordering quantity is to be calculated on the basis of following information: Cost of placing a purchase order is $. 20 Number of 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 units is $. 5. Details of lead time: Average-10 days, Maximum- 15 days, Minimum- 5 days. For emergency purchases- 4 days. Rate of consumption : Average: 15 units per day, Maximum: 20 units per day