From the following records regarding material calculate (i) the re order level, (ii) the maximum stock level, and (iii) the minimum stock level.
|
Re order quantity |
6,000 units |
|
Minimum stock (for emergencies) |
5 weeks |
|
Average delivery time |
4 weeks |
|
Maximum stock level |
20 weeks |
|
Average consumption per week |
400 units |
|
Minimum consumption in 4 weeks |
1,200 units |