Ace Ltd. manufactures a product and the following particulars are collected for the year ended March, 2011:

Monthly demand (units)	250
Cost of placing an order ( )	100
Annual carrying cost ( per unit)	15
Normal usage (units per week)	50
Minimum usage (units per week)	25
Maximum usage (units per week)	75
Re-order period (weeks)	4–6

You are required to calculate:

(i) Re-order quantity

(ii) Re-order level

(iii) Minimum level

(iv) Maximum level

(v) Average stock level.

Answer rating: 100% (QA)

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