QUESTION $7$

Given the following data:

Average usage $200$ units per day

Minimum usage $120$ units per day

Maximum usage $260$ units per day

Lead time $2026$ days

EOQ $8000$ units;

$($a$)$ Calculate:

$($i$)$ Re$-$order level $(4$ marks$)$

$($ii$)$ Minimum level $(4$ marks$)$

$($iii$)$ Maximum level $(4$ marks$)$

$($b$)$ Explain the following terms:

$($i$)$ Re$-$order level $(2$ marks$)$

$($ii$)$ Re$-$order quantity $(2$ marks$)$

$($iii$)$ Lead time $(2$ marks$)$

$($iv$)$ Maximum level $(2$ marks$)$