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Period Component A Component 1. Reorder (Maximum Consumption X-Maximum Consumption Level Maximum Reorder period X Maximum Reorder - 300 units x 4 weeks period) -

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Period Component A Component 1. Reorder (Maximum Consumption X-Maximum Consumption Level Maximum Reorder period X Maximum Reorder - 300 units x 4 weeks period) - 1,200 Units. - 300 units x 2 weeks 600 Units. 2 Minimum Reorder Level - Normal [Reorder Level Level Consumption X Average Period of (Normal Consumption X Delivery Average af - 1,200-200 X 2-4/2) Delivery -600 Units - 600 - (200 X 12/2) - 300 Units 3 Maximum - Reorder Level . Reorder - (Reorder Level Quantity - (Minimum Consumption Reorder Quantity X minimum Time for Reordering) (Minimum Consumption X - 1,200 1.600 - (100 X 2) minimum Time for -2,600 Units Reordering) - 600 +2.400 - (100 X 1) -2.900 Units Average - (Maximum Level . Minimum - (Maximum Level stock Level Level 2) Minimum Level 2) -2,600 600/2 2,900 300/2 - 1,600 Units 1,500 Units Level U18 POR Ltd. manufactures a special product, which requires 'ZED The following particulars were collected for the year 2009-10 1. Monthly demand of Zed 7,500 Units 2. Cost of placing an order Rs. 500 3. Reorder Period 5 to 8 weeks 4. Cost per unit Rs. 60 5. Carrying Cost % p.a. 10% 6. Normal Usage 500 Units per week 7. Minimum Usage 250 Units per week 8. Maximum Usage 750 Units per week Required: 1. 2. 3. Reorder Quantity Reorder Level Minimum Stock Level Maximum Stock Level Average Stock Level 5

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