Question 2

(I) a process that makes sure that a company has the right amount of
products available.

(II)
A. ROL : 800* 28 = 22,,400 kg.

B. Max. Stock Level = 22,400 + 25,000 – ( 600 * 20 ) = 35,400 kg.

C. . Stock Level = 22,400 – ( 700 * 24 ) = 5,600 kg.

D. Average Stock Level = 25,000 divide 2 = 12,500 kg.

Question 3

( I ) Reorder level is the stock level of a particular item in the

inventory. Reorder quantity is the number of items that needs to be
ordered for the next purchase.

(I)
A. ROL = 1,100 * 4 = 4,400 units.

B. ROQ = ( 1,100 +900) divide 2 , * , ( 4+2 ) divide 2 = 3,000 units.

C. Min Stock Level = 4,400 – ( 1000 * 3 ) = 1,400 units.

D. Average Stock Level = 3000 divide 2 = 1500 units.

Question 5

(I ) EOQ = √ 2∗20∗12,500
❑
= 13 units.
3125

(II) Frequency in days based on a 365 days a year = 365 divide 13 = 28

days.