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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.
Re- order level = minimum limit + consumption during the time required for fresh delivery
Re- order level =2000+(200x12) =4,400 units
Correct answer given by Mir Mujtaba Ali
agree with Mir Mujtaba Ali
thank you for invitation
Agreed with the sentiments respected professors
I agree to answers of4400 units
Re-ordering level = (200*12) +2000 =2400+2000=4400 units
Yes I agree;
Min.2000 + (12 days x200) =4400
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.
THE ANSWER IS
2000(MIN)+(200*12)DAILY REQUIRMENT
THE TOTAL IS4400
t* = y over d
y = t* x d =12 *200 =2400 ( its foll between the range2000 -7000)