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Determine the maximum level and economic order quantity

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Reference no: EM132586063

A company will purchase 6000 pairs of shoes of joggers next year. Policy manual of the club prescribes to impute cost per unit is Rs.12000, ordering cost is 1000 per order and carrying cost is 15%. In addition to this the following data is extracted from company's document

Lead Time 10 Days

Maximum Requirement per day 100 Pieces

Minimum Requirement per day 20 Pieces

Average Requirement per day 35 Pieces

Required

Question 1. Economic Order Quantity

Question 2. Maximum Level

Question 3. Minimum Level

Question 4. Danger Level

Reference no: EM132586063

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