The following information is available in respect of component 20:
|
Maximum stock level |
8000 units |
|
Budget consumption |
Maximum: 1500 units per month |
|
Minimum: 800 units per month |
|
|
Estimated delivery period: |
Maximum = 4 months |
|
Minimum = 2 months |
You are required to calculate:
(a) Re–order level (b) Reorder quantity