Re-order Level = Maximum consumption x Lead Time

= 9000 x 13

= 117000 Units

Minimum Level = Reorder Level (Average Rate of consumption x Average Reorder Period)

= 11700 (6520 x 11.5)

= 45125 Units

Maximum Stock Level

(Reorder Level + Reorder Quantity) (Minimum Consumption Rate x Minimum Reorder

Period)

( 117000 + 45125) ( 3500 x 10)

(305875) (35000)

127125 Units

Danger level = normal rate of consumption Emergency delivery time

EOQ =

6250 x 5

31250 Units

2(annual usage in units)(order cost)/(annual carrying cost per unit )

2(500000)(12500)/12.5

102500/12.5

82000

286.35 units