Question: Two components, A and B are used as follows : Normal usage 50 per week each Maximum usage 75 per week each Minimum usage 25

Two components, A and B are used as follows :

Normal usage 50 per week each Maximum usage 75 per week each Minimum usage 25 per week each Re-order quantity A : 300; B : 500 Re-order period A : 4 to 6 weeks B : 2 to 4 weeks

Calculate for each component (a) Re-ordering level, (b) Minimum level, (c) Maximum level, (d) Average stock level.

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