LS0100: Madhuban group manufactures a product. The following particulars are as follows

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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

Compute:

1. Economic order quantity

2. Re- order level

3. Minimum stock level

4. Maximum stock level


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