Star Electronics Limited (SEL) is a small manufacturer of home electronic items. For its production cycle, during last quarter of the year 2016, the company’s management accountant reveals following information:

Average Weekly Consumption in Units


3,500 - 9,000


Annual Consumption in Units


Per order cost (Rs.)


Per unit cost (Rs.)


Carrying cost (% of Unit cost)


Time to receive delivery in weeks

10 - 13

Emergency lead time in weeks



Using the above information, compute following levels for the said quarter: 1. EconomicOrderQuantity(EOQ)
2. Re-orderstock
3. MaximumStock

4. MinimumStock

5. DangerStock 

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Replies to This Discussion



gud bro... arrange it like it was asked in that way :)

i think 40 b ay unit per cost  x CC EOQ ma . please ager share kery theeek sol keray ap ku galat chiz share kerty ha itna kaam kiya hota ha ager galti sy chora tw its ok ager jaan bhoj ker miss kiya ha zera sochiay ya phr ya b na keray .. ya jo pata ha wo keray . !! dhoka na dain kisi ko  


see your solution again because its not completely correct

Huma could you share you answer only ? just answer /?  as i share the answer 


yours answers are completely wrong

Please Discuss here about this assignment.Thanks

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i Follow this example EOQ formula is already give in the handouts

After calculation i get these ans 

1), 2), 3), 4), 5)  Question numbers 

1)  5000

2  117000

3  87000

4) 45125

5) 31250


Here are my Assignment answers 

1. Economic Order Quantity (EOQ)
EOQ =    5000

2. Re-order stock level
           = 117000 Units

3. Maximum Stock level
            = 87000

4. Minimum Stock level
        = 15125

5. Danger Stock level
        = 31250


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