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Calculate maximum level and economic order quantity

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Reference no: EM132562550

XP Ltd. is a manufacturing company with high stock requirements. Management are currently considering their stockholding policy.

The following information is available for one stock item, material X153, which has a value of TZS1000 per kilo:

                                 Maximum                  Minimum

Weekly demand               2,000 kilos                 1,600 kilos

Lead time                          16 days                      10 days

Question 1: The company works a five-day week for 50 weeks per annum. The cost of placing an order is TZS9000 and the holding cost is estimated at 10% of stock value.calculate maximum level,economic order quantity ,re order level ,minimum level

Reference no: EM132562550

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