A company manufactures 5,000 units of a product per month. The cost of placing an order is Rs 100. The purchase price of the raw material is Rs 10 per kg. The re-order period is 4 to 8 weeks. The...

A company manufactures 5,000 units of a product per month. The cost of placing an order is Rs 100. The purchase price of the raw material is Rs 10 per kg. The re-order period is 4 to 8 weeks. The consumption of raw materials varies from 100 kgs to 450 kgs per week, the average consumption being 275 kgs. The carrying cost of inventory is 20 per cent per annum. You are required to calculate:

(i) Re-order quantity

(ii) Re-order level

(iii) Maximum level

(iv) Minimum level

(v) Average stock level