Manar Enterprises manufactures a product A. The following particulars are given for Material X used for producing product A for the year 2021

Monthly demand of 5000 units

• Cost of placing an order OMR 75
• Annual carrying cost per unit OMR 125
• Storage cost = 20 %
• Normal usage 600 units per week
• Maximum usage 700 units per week
• Minimum usage 400 units per week
• Reorder period 4 to 6 weeks

Compute from the above:

(a) EOQ

(b) Reorder level,

(c) Minimum level,

(d) Maximum level,

(e) Average stock level.