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