41. A company purchases a component from another factory. Based on the past records, the EOQ for the component is 3,600 units, with an average usage of50 units a day. The normal lead time is 6 days and the carrying cost per unit is Rs 10 per year. The cost of being out-of-stock for this component is estimated to be Rs 50 per unit and the company places 5 orders a year.

An analysis of the past inventory records for the component has revealed the following usage pattern:

Determine the optimal safety stock and the optimal re-order level for the component.

Usage during the re-order period (units) No. of times this quantity was used 150 3 200 4 250 6 300 68 350 9 400 7 450 3 Total 100