Q221
"Calculate re-order level from the following: Safety stock: 1000 units Consumption per week: 500 units It takes 12 weeks to reach material from the date of ordering"
A.
1000 units
B.
6000 units
C.
3000 units
D.
7000 units
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Re-order level = Safety stock + Total consumption = 1000 + (500 × 12) = 1000 + 6000 = 7000 units.