From the details given below, CALCULATE: (i) Re-ordering level(ii) Maximum level(iii) Minimum level (iv)Danger level.Re-ordering quantity is to be calculated on the basis of following information: Cost of placing a purchase order is ` 4,000 Number of units to be purchased during the year is 5,00,000 Purchase price per unit, inclusive of transportation cost is ` 50 Annual cost of storage per unit is ` 10. Details of lead time: Average- 10 days, Maximum- 15 days, Minimum- 5 days, for emergency purchases- 4 days. Rate of consumption: Average: 1,500 units per day,Maximum: 2,000 units per day.
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