921 Normal usage 110 units per day Minimum usage 50 units per day Maximum usage 140 units per day Lead Time 25-30 days EOQ 5.000 units (calculated earlier) Using the data, calculate the Re-order, Minimum and Maximum Levels. (a) ROL = Maximum Usage x Maximum lead time = 140 x 30 days = 4,200 units. (6) Minimum Level = ROL - (Average Usage Average lead time) = 4,200 - (110 x 27.5) = 1,175 Units. (c) Maximum Level = ROL - (Minimum Consumption * Minimum lead time) + EOQ = 4,200 - (50 x 25) + 5.000 = 7,950 Units. Illustration 23: ZEE' is a product manufactured out of three raw materials M 'N' and 'Q'. Each unit of ZEE requires 10 kg. 8 kg and 6 kg of M, N and Q respectively. The re-order levels of 'M' and N are 15,000 kg and 10.000 kg respectively while the minimum level of 'Qis 2,500 kgs. The weekly production of ZEE varies from 300 to 500 units, while the weekly average production is 400 units. You are required to compute: (1) The minimum stock level of M, (ii) The maximum stock level of N, and (iii) The re-order level of Q. The following additional data are given: M N Reorder quantity (in kg) 20,000 15.000 20,000 Delivery (in weeks) Minimum 2 3 Average Maximum 5 4 3 5 + 4 6