If the Minimum Stock Level is 2,500 units, Normal Consumption is 150 units, Maximum Re-order Period is 10 days and Normal Re-order Period is 8 days, then Re-order Level will be :

CS Executive · Cost and Management Accounting · PYQS · December 2018
If the Minimum Stock Level is 2,500 units, Normal Consumption is 150 units, Maximum Re-order Period is 10 days and Normal Re-order Period is 8 days, then Re-order Level will be :
(A) 1,500 units
(B) 4,000 units
(C) 1,200 units
(D) 3,700 units

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Inventory Management

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