Answer Happy

Question 2 You are the warehouse manager for OLAM The information that follows should help you determine your stock control levels. Annual Demand = 4000 Cost of material per unit = €50.00 Cost of placing and receiving one order = ¢40.00 Carrying and storage cost = 8% per annum of Inventory Value Further information given is Minimum consumption: 100 units per week each Maximum consumption: 150 units per week each Normal consumption: 120 units per week each Reorder quantity is the same as the Economic Order Quantity Reorder period: 4 to 6 weeks, Maximum reorder period for emergency purchases is 2 weeks respectively. You are required to calculate: a) Economic Order Quantity b) Reorder level C) Maximum Stock Level d) Minimum Stock Level e) Average stock Level