A national chain of tyre fitters (tiger wheel and tyres) stocks a popular tyre for which the following information is available. The company operates on 50-weeks a year and normally operates from Monday to Friday only. Ordering Costs per order N$175.50 Holding Cost per unit 3 % of unit cost Cost per tyre N$1 800 Reorder quantity 5 000 Lead time 12 to 16 days Maximum usage 175 tyres per day Minimum usage 90 tyres per day Average usage 140 tyres per day 1. Calculate the minimum level of inventory 2. Calculate the maximum level of inventory
A national chain of tyre fitters (tiger wheel and tyres) stocks a popular tyre for which the following information is available. The company operates on 50-weeks a year and normally operates from Monday to Friday only.
Ordering Costs per order N$175.50
Holding Cost per unit 3 % of unit cost
Cost per tyre N$1 800
Reorder quantity 5 000
Lead time 12 to 16 days
Maximum usage 175 tyres per day
Minimum usage 90 tyres per day
Average usage 140 tyres per day
1. Calculate the minimum level of inventory
2. Calculate the maximum level of inventory
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