QUESTION TWO (a) Bambata and Reuben Ltd has the following details about its inventories. Maximum usage 20,000 units Maximum re-order period 3months Minimum usage 10,000units Minimum re-order period 1month Normal usage 15000units Normal re-order period 2months Re-order quantity 30,000units

You are required to calculate the;

i. Re-order Level

ii. Maximum Stock Level

iii. Minimum Stock Level

iv. Average Stock Level

(b) Explain the following;

i. Re-order level

ii. Minimum stock level

iii. Maximum stock level

iv. Average stock level

v. Re-order quantity

vi. Re-order period