material cost

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minimum stock level 4000 units and average stock level 9000 units then calculate reorder quantity ? Please give me solution for this question
Replies (2)

Avg Stock Level = 1/2 ROQ+Min Level

Therefore 9000=1/2 ROQ +4000

9000-4000=1/2 ROQ

5000=1/2 ROQ

5000*2= ROQ

ROQ=10000 Units.

thanks harshad

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