A company manufactures 5,000 units of a product per month. The cost of placing an order is 100. The purchase price of the raw material is 10 per kg. The re-order period is 4 to 8 weeks. The consumption of raw materials varies from 100 kg to 450 kg per week, the average consumption being 275 kg. The carrying cost of inventory is 20% per annum. Calculate: (I) Re-order quantity (II) Re-order level

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