Solution-Calculate the reorder level

Calculate the reorder level

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Reference no: EM132611150

A. Cable Manufacturing Ltd. has provided you with the following information:

Maximum usage 80kg per day

Minimum usage 40kg per day

Maximum lead time 4 days

Minimum lead time 2 days

Annual demands 16,000kgs

EOQ 5,000kgs

It cost $12 to hold 1kg per annum and the cost of ordering each consignment is $100.

Required:

Question 1: calculate

i. The reorder level

ii. Minimum level

iii. Maximum level

iv. List three examples of holding cost

Reference no: EM132611150

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Calculate the reorder level

Reference no: EM132611150

Reference no: EM132611150

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