Irenitemi Nigeria Limited uses a material item called villa in the manufacturing of their product. The reorder quantity for the product is 24000 units. The company uses 3000 units per week. However, the company has difficulty in determining the length of the lead time between ordering more materials for the product and receiving the delivery from their supplier.

Supply lead time weeks

Average 5.0

Maximum 6

Minimum 2

Required:

Calculate the Reorder level, the maximum inventory level, and the minimum inventory level for the item.

Answer rating: 100% (QA)

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