average monthly market demand 617173

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M/S Tubes Ltd is the manufactures of picture tubes for T.V. The following are the details of their operations:

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Ordering cost	Rs. 100 per order
Inventory–carrying cost	20% p.a.
Cost of tubes	Rs. 500 per tube
Normal usage	100 tubes per week
Maximum usage	200 tubes per week
Minimum usage	50 tubes per week
Lead time to supply	6 to 8 weeks

Compute from the above

EOQ. If the supplier is willing to supply quarterly 1,500 units at a discount of 5% is it worth accepting?
Maximum level of stock
Minimum level of stock
Reorder level

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