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Determining the monthly demands

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Reference no: EM131928478

ABC Ltd. manufactures a special product 'X'. The following particulars collected for the year 2011:

  1. Monthly demands of 'X' 1000 units.
  2. Cost of placing an order Rs. 100.
  3. Annual carrying cost per unit Rs. 15.
  4. Normal usages 50 units per week; minimum usage 25 units per week and maximum usage 75 Units per week.
  5. Reorder period 4 to 6 weeks.

Compute:

i. Economic Order Quantity.

ii. Reorder level.

iii. Minimum level.

iv. Maximum level.

Reference no: EM131928478

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