Following information are supplied to you: Consumption per day: 800 – 1200 units Re order period: 3 – 5 days Maximum stock level: 6000 units Required: Re order quantity.

Re-order Quantity (EOQ) Calculation

The re-order quantity (ROQ) is determined by the maximum stock level and the re-order period. Here’s the step-by-step calculation:

1. Maximum stock level (MSL) = 3,00,000 units
2. Re-order period = 5 days (maximum)
3. Daily consumption = 50,000 units (maximum)

$$\text{Re-order quantity (ROQ)}=\text{MSL}+(\text{Re-order period}\times \text{Daily consumption})$$

$$\text{ROQ}=3,00,000+(5\times 50,000)=3,00,000+2,50,000=5,50,000\text{ units}$$

Final Answer: 5,50,000 units