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Which of the following is not correct for the calculation of the re-ordering level of inventory?

April 28, 2022
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Which of the following is not correct for the calculation of the re-ordering level of inventory?

Q. Which of the following is not correct for the calculation of the re-ordering level of inventory?

A.            Maximum consumption × Maximum re-order period

B.            (Maximum consumption × Lead time) + Safety stock

C.            Minimum level + Consumption during time lag period

D.            (Maximum consumption × Lead time) – Safety stock

Answer: (Maximum consumption × Lead time) + Safety stock

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