Q26
In order to avoid the stoppage of production due to shortage of material _______.
A.
maximum stock level is maintained
B.
minimum stock level is maintained
AnswerC.
re-order level is maintained
D.
average stock level is maintained
Answer: Option B
Solution
Answer: Option B
Solution:
In order to avoid the stoppage of production due to shortage of material minimum stock level is maintained. The minimum level of stock is a certain predetermined minimum quantity of raw materials or merchandise inventory which should always be available in stock in the normal course of business.