Question: Calculate (a) EOQ, (b) maximum level, (c) minimum level and (d) reordering level from the following data: Inventory carrying cost is 20% of unit value.

Calculate

(a) EOQ,

(b) maximum level,

(c) minimum level and

(d) reordering level from the following data: Reorder period Maximum consumption Minimum consumption Normal consumption 50 units per week

Inventory carrying cost is 20% of unit value.

Reorder period Maximum consumption Minimum consumption Normal consumption 50 units per week 75 units per week Annual consumption Cost per unit Ordering cost 36,000 units Re 1 Rs 25 4-6 weeks 100 units per week

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