M / s . ABR P Ltd . , has been ordering a critical item ( service level needed is 98 % where Z =

M$/$s$.$ ABR P Ltd$.,$ has been ordering a critical item $($service level needed is $\mathrm{98}\%$ where Z$=\mathrm{2.05})$ used in

their manufacturing ni the lots of $\mathrm{50}$ units. This company works $\mathrm{05}$ weeks ni a year. The inventory holding cost is $\mathrm{10}\%$ of the item cost. You as a consultant shall correct it if need be and also need to tell them when

to order $-$ time interval and at what stock levels. The details of this particular item are as follows

Weekly demand $=\mathrm{100}$

Cost of the item $=$ Rs$.\mathrm{1000}$

Ordering cost $=$ Rs$.\mathrm{200}$

Standard deviation during lead time $=5$ Lead time for this item $=\mathrm{0.5}$ weeks