Ace Ltd. manufactures a product and the following particulars are collected for the year ended March, 2011:
|
Monthly demand (units) |
250 |
|
Cost of placing an order ( ) |
100 |
|
Annual carrying cost ( per unit) |
15 |
|
Normal usage (units per week) |
50 |
|
Minimum usage (units per week) |
25 |
|
Maximum usage (units per week) |
75 |
|
Re order period (weeks) |
4–6 |
You are required to calculate:
(i) Re order quantity
(ii) Re order level
(iii) Minimum level
(iv) Maximum level
(v) Average stock level.