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Materials D1 D2 D3 18,000 12,000 28,000 1-3 2-3 2-4 30,000 25,000 50,000 Normal usage per month Lead time in months) Maximum consumption per month

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Materials D1 D2 D3 18,000 12,000 28,000 1-3 2-3 2-4 30,000 25,000 50,000 Normal usage per month Lead time in months) Maximum consumption per month Minimum consumption per month Maximum lead time for emergency purchase Cost of placing an order Annual carrying cost per unit 10,000 8,000 19,000 3 1 2 200 200 200 100 100 100 Required: Calculate the following for the three materials: a) Danger stock level and number of orders to placed in a year. b) Reorder quantity Minimum stock level (2 Marks) (1 Mark) (1 Mark) d) Maximum stock level. (1 Mark) (1 Mark) e Average stock level

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