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The lead time and consumption pattern of a component is as follows:
If safety stock = 54,000 units. The ROL is
  • a)
    2,50,000
  • b)
    3,00,000
  • c)
    2,46,000
  • d)
    2,40,000
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
The lead time and consumption pattern of a component is as follows:If...
Average lead time
= 0.2 × 15 + 0.5 × 20 + 0.3 × 25
= 20.5
Average consumption
= 0.5 × 10,000 + 0.5 × 14,000
= 12,000 units
ROL = SS + Avg. lead time × Avg. consumption
= 54,000 + 20.5 × 12,000
= 3,00,000
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