Inventory Management MCQs

Reorder level is the level of inventory at which a new order for the item should be placed with the supplier

April 27, 2022

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Reorder level is the level of inventory at which a new order for the item should be placed with the supplier

Q. Reorder level is the level of inventory at which a new order for the item should be placed with the supplier.

A. True

B. False

Answer: True

Reorder level is the level of inventory at which a new order for the item should be placed with the supplier

Previous

In an inventory control system, if there is uncertainty about the length of the supply lead time and demand during the lead time there might be following warning levels for inventory, to warn management that:

Reorder level is the level of inventory at which a new order for the item should be placed with the supplier

Next

If the supply lead time is certain and demand during the lead time is constant, a company would be able to set a reorder level such that it used the last item just as a new order arrived thus reducing holding costs to a minimum. The reorder level to do this is found as:

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