Gkseries in Inventory Management MCQs

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

Next Read: 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: »

Gkseries: Gkseries.com is a premier website to provide complete solution for online preparation of different competitive exams like UPSC, SBI PO, SBI clerical, PCS, IPS, IAS, IBPS PO, IBPS Clerical exam etc. & other graduate and post-graduate exams. Learn more on about us page