One of the components used by K Ltd is ordered from a specialist supplier. The daily usage for this component and the time between placing and receiving an order (the lead time) can vary as follows:
|
Maximum usage |
750 per day |
|
Average usage |
580 per day |
|
Minimum usage |
450 per day |
|
Maximum lead time |
15 days |
|
Average lead time |
12 days |
|
Minimum lead time |
8 day |
Calculate the number of units that can be ordered at the re-order level if. As a result of storage problems, the company cannot allow stock to rise above 15 000 units.