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XP Ltd. is a manufacturing company with high stock requirements. Management are currently considering their stockholding policy. The following information is available for one stock


XP Ltd. is a manufacturing company with high stock requirements. Management are currently considering their stockholding policy.

The following information is available for one stock item, material X153, which has a value of TZS1000 per kilo:

Maximum Minimum

Weekly demand 2,000 kilos 1,600 kilos

Lead time 16 days 10 days

The company works a five-day week for 50 weeks per annum. The cost of placing an order is TZS9000 and the holding cost is estimated at 10% of stock value.calculate maximum level,economic order quantity ,re order level ,minimum level

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Answer Maximum Level ML 6400 kg Economic Order Quantity EOQ 1414 kg Reorder Level ROL ... blur-text-image
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