From the details given below, calculate:
(i) Re-ordering Level
(ii) Maximum Level
(iii) Minimum Level
(iv) Danger Level
Cost of placing a purchase order is Rs. 20
Number of units to be purchased during the year is 5,000.
Purchase price per unit inclusive of transportation cost is Rs. 50.
Annual cost of storage per unit is Rs. 5

Transcribed Image Text:

Details of lead time: Rate of Consumption Average 10 days, Maximum 15 days, Minimum 6 days. For emergency purchases 4 days. Average : 15 units per day, Maximum: 20 units