Calculate danger level when Normal Usage or Average daily requirement - 7,500 units per day Maximum Usage - 8,500 units per day Minimum Usage - 7,000 units per day Re-order period - 25 to 30 days Time required to receive emergency supplies - 5 days

 It is 37,500 units. Danger level - Average daily requirement X Time required to get emergency                                                                                  Supply                                                   7,500 X 5  = 37,500 units Danger level of stock is that if the stock reaches below this level, urgent action for replenishment of stock must be taken to prevent stock-out-position.