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Please calculate the ' re-ordering level' from the given particulars below.

Maximum consumption =1000 units per day

Minimum consumption =900 units per day

Re-order period =15 to18 days

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Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2015/02/10
Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

Re-order level = Maximum consumption x maximum re-order period

Re-order level =1000*18 =18,000 units

 

Mozammil Ahmad
by Mozammil Ahmad , Manager Accounts , Ecopack Limited

Its Maximum consumption in maximum lead time i.e.1,000 *18 =18,000 units

ali hassan arain
by ali hassan arain , ACCOUNTS MANAGER , IZHAR AND CO. CHARTERED ACCOUNTANTS

Also agreed with Mir mujtaba Ali,s answer. That is18000 units

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

agree with  Mir Mujtaba Ali 

thank you for invitiation 

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Re-order level = Maximum consumption x maximum re-order period

Maximum consumption:1000 units

Maximum re-order period:18 days.

Re-order level=1000 X18 =18000 units

Zohaib Ashfaq
by Zohaib Ashfaq , Accountant and Cashier , Al-Hateem International Travel and Tours

Max. consumptionXMax. period

1000unitsX18days=18,000 units

Malik Khalid Mahmood
by Malik Khalid Mahmood , Regional Finance Manager , Leosons International FZ LLC

Good contribution by the experts, thanks for good answers

Sara Khan
by Sara Khan , financial and admin assistant , Ministry Of Defence

Thank you Sir for the invitation...Fully agreed with all experts.

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

18000 units

Re-order Level= Maximum Consumption x Maximum Re-ordering Period

 

Salam Sleem
by Salam Sleem , assistant account , platinum costraction company

R = y(optimal) over D (demand ) 

18 = y over1000

y =18000 (maximum level)

y =900 *15 =13500 ( min. level)

 

FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

>>>>>>>>>>>>>>>>>18000 UNITS 

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