Question: A. Calculate for each components A & B: Minimum level (A, B), Two components A and B are used as follows: Minimum usage 140 units

A. Calculate for each components A & B:Minimum level (A, B),

Two components A and B are used as follows:

Minimum usage 140 units per week each

Maximum usage 560 units per week each

Reorder Quantity A 250 units; B 550 units

Reorder Period A 3.5 to 5.5 weeks, B 6.5 to 7.5 weeks

19. B. The cost of placing an order is Rs.145. The purchase price of the raw material is Rs. 10 per kg. The re-order period is 1 to 4 weeks. The average consumption being 240 kg per week and total weeks 52. The carrying cost of inventory is Rs.2.5. What is Economic order Quantity.

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