Question: Question 2 Middle Ltd. has provided the accountant with the following information: Average usage Minimum usage Maximum usage Lead time 100 units per day

Question 2 Middle Ltd. has provided the accountant with the following information:

Question 2 Middle Ltd. has provided the accountant with the following information: Average usage Minimum usage Maximum usage Lead time 100 units per day 60 units per day 130 units per day 20-26 days EOQ (previously calculated) 4,000 units Required: a. Calculate the following: b. i. ii. 111. The reorder level Minimum stock level Maximum stock level (2 marks) (2 marks) (3 marks) State four (4)basic assumptions necessary to calculate the EOQ (4 marks)

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