Re-order period
= 10-15 days
Re-order quantity
= 878 units
Normal re-order period
= 12 days
Re-order level
=
65 units * 15 days
=
975 units
Minimum stock level
= re-order level – (normal consumption * Normal re-order period)
Maximum stock level -
=
975 - (59 units * 12 days)
=
267 units
= (re-order level + re-order quantity ) ( min. consumption – order period)
= ( 975 units + 878 units ) - (55 units * 15 days) = 1028 units
Average stock level = minimum stock level + ½ of Re-ordering