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Question: Madhuban group manufactures a product. The following particulars are as follows.
Monthly demand 1000 unit
Cost of placing an order Rs 100
Annual cost carrying per unit Rs 15
Normal usages 50 units per week
Minimum usages 25 units per week
Maximum usage 75 unit per week
Re-order period 4 to 6 week
1. Economic order quantity
2. Re- order level
3. Minimum stock level
4. Maximum stock level
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