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Commerce · Q215

Costing

Graduate and Post Graduate · Commerce · question 215

Q215

"Calculate Re-order level from the following: Consumption per week: 100-200 units Delivery period: 14-28 days"

A.
5600 units
B.
800 units
Answer
C.
1400 units
D.
200 units

Answer: Option B

Solution

Answer: Option B
Solution:
Maximum consumption per week = 200 unit Maximum delivery time = 28 days = 4 week Re-order level = 200 x 4 = 800 units.