7. The daily demand for a product is approximately 100 units. The ordering cost per order is Rs 100 and the average daily holding cost per unit is 2 paise. If the lead time is 14 days, determine the economic lot size for placing an order and also the re-order level.

If the lead time is reduced to 7 days, what will be the re-order level? How will the re-order level change if the lead time increases to 21 days?