The following data relate to inventory item A452:
Average usage
100 units per day
Minimum usage
60 units per day
Maximum usage
130 units per day
Lead time
20-26 days
EOQ
4,000 units
What is the maximum inventory level?
________ units
The maximum inventory level was 6,180 units
Reorder level
maximum usage ´ maximum lead time
130 ´ 26 = 3,380 units
Maximum level
reorder level + reorder quantity - (minimum usage ´ minimum lead time)
3,380 + 4,000 - (60 ´ 20)
6,180 units
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