In respect of a material, you are given the following particulars and requested to calculate the Re-ordering level.

Question

Particulars are

1. Minimum limit-2000 units

2. Maximum limit-7000 units

3. Daily requirement of the materials -200 units

4.Time required for fresh delivery12 days.

Mir Mujtaba Ali · Answer

Re- order level = minimum limit + consumption during the time required for fresh delivery

Re- order level =2000+(200x12) =4,400 units

Wasi Rahman Sheikh · Answer

Correct answer given by Mir Mujtaba Ali

Ahmed kandil · Answer

agree with Mir Mujtaba Ali

thank you for invitation

Kripesh Krishnan Kutty Nair · Answer

Minimum quantity to keep =2000,
Daily consumption =200
Maximum delivery time taken =12 days.
So12 days consumption + minimum ququantity= minimum re order level.
=12*200+2000=4400

nour ibrahim · Answer

Agreed with the sentiments respected professors

Khaled Mohee Eldeen Abbas Mahmoud · Answer

I agree to answers of4400 units

Abd ElRahman Mohammed Idris Mohammed · Answer

Re-ordering level = (200*12) +2000 =2400+2000=4400 units

Deleted user · Answer

Yes I agree;

Min.2000 + (12 days x200) =4400

Ani Kuriakose · Answer

I agree with Mujtaba Ali

As minimum level is the level beyond which stock MUST NOT fall.

Min Level = ROL - Lead-time usage

2000 = ROL-2400

ROL=4400.

Mohamed Farouk · Answer

THE ANSWER IS

2000(MIN)+(200*12)DAILY REQUIRMENT

THE TOTAL IS4400

Salam Sleem · Answer

t* = y over d

y = t* x d =12 *200 =2400 ( its foll between the range2000 -7000)

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In respect of a material, you are given the following particulars and requested to calculate the Re-ordering level.

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