Sprayer Stock Management

This text discusses the management of sprayer stocks. It covers the following topics:

• The minimum level of stock that should be maintained
• The level at which a new order should be placed
• The factors that affect the decision of how many sprayers to order

Here are the answers to the questions posed in the text:

1. The minimum level of stock that should be maintained is 15 units.
2. A new order should be placed when the stock falls to 45 units.
3. The decision of how many sprayers to order depends on the maximum stock that can be accommodated, the estimated cost of each sprayer, and the annual cost of borrowing money to finance stocks. A reasonable number of sprayers to order would be 80.