ABC Ltd.

ABC Ltd. manufactures a special product ‘X’. The following particulars collected for the year 2011:

  1. Monthly demands of ‘X’ 1000 units.
  2. Cost of placing an order Rs. 100.
  3. Annual carrying cost per unit Rs. 15.
  4. Normal usages 50 units per week; minimum usage 25units per week and maximum usage 75 Units per week.
  5. Reorder period 4 to 6 weeks.


i.                Economic Order Quantity.

ii.               Reorder level.

iii.              Minimum level.

iv.             Maximum level.


Files: MBAF-107.doc