Toystop Inc. manufactures toys for kids. Following is the data pertaining to one of its parts being used assembly of a specific toy.

in

Working days per year 300

Normal use per day 550 units

Maximum use per day 600 units

Minimum use per day 150 units

Lead Time 5 days

Variable cost of placing one order (Ordering Cost per order) 1,200

Variable Carrying (Storage) cost per unit per year 350

Required:

Calculate the following from the data given above:

1. Economic Order Quantity for normal usage

2. Safety Stock (Maximum)

3. Order Point (At normal usage)

4. Maximum Level of Inventory

5. Minimum Level of Inventory

6. Average Level of inventory assuming normal lead time and normal usage.