# ECR--Calculate the major control level?

Hi,all,

need help at this exercise,

Given situation:
average usage: 100 units /day
minimum usage: 60 units /day
maximum usage: 130 units /day
E.O.Q.: 400 units

you are require to Calculate: re-order level
maximum level
minimum level

• Hi

Re-order Level = Max usage x max lead time
= 130 x 26
= 3,380

Minimum Stk level = re-order level - ( avg usage x avg lead time)
= 3,380 - (100 x 20+26/2)
= 1,080

Max stk level = re-order level + re-order quantity( EOQ) - ( min usage x min lead time)
= 3,380 + 400 - (60 x 20)
= 2,580
• Hi, Spring Flower,Thank u very much!

At the 1st calculation for re-order level, i even was stucking there by the formula told us:
Re-order level= (Max usage X Max lead time) + Mini level
i was looking for to find out the Mini level, but from your answer, Is that means we can omit that --(Mini level) when the situation not given to us?
• Hello,:001_smile:

Re-order Level = Max usage x Max lead time + Reserve Stock(i.e given in your question,oftenly says additional stock also).