ABC Ltd. manufactures a special product ‘X’. The following particulars collected for the year 2011:
Monthly demands of ‘X’ 1000 units.
Cost of placing an order Rs. 100.
Annual carrying cost per unit Rs. 15.
Normal usages 50 units per week; minimum usage 25units per week and maximum usage 75 Units per week.
Reorder period 4 to 6 weeks.
Compute:
i. Economic Order Quantity.
ii. Reorder level.
iii. Minimum level.
iv. Maximum level.
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