The minimum stock level is calculated as

Q. The minimum stock level is calculated as

A.            Reorder level – (Nornal consumption x Normal delivery time)

B.            Reorder level + (Nornal consumption x Normal delivery time)

C.            (Reorder level + Nornal consumption) x Normal delivery time

D.            (Reorder level + Nornal consumption) / Normal delivery time

Answer: Reorder level – (Nornal consumption x Normal delivery time)