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Which of the following formula is used to calculate Maximum Level?

Which of the following formula is used to calculate Maximum Level?

Q. Which of the following formula is used to calculate Maximum Level?

A.            (Re-order level + Re-order qty) – (Maximum consumption × Maximum reorder period)

B.            (Re-order level + Re-order qty) – (Minimum consumption × Minimum reorder period)

C.            (Re-order level 4- EOQ) – (Minimum consumption × Minimum re-order period)

D.            (B) or (C)

Answer: (B) or (C)

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