ABC Ltd. manufactures a product and the following particulars are collected as below: Normal Usage (unit per week) 50 Minimum Usage (unit per week) 25 Maximum Usage (unit per week) 75 Re-order period (weeks) 4–6 You are

CS Executive · Cost and Management Accounting · PYQS · December 2017
ABC Ltd. manufactures a product and the following particulars are collected as below: Normal Usage (unit per week) 50 Minimum Usage (unit per week) 25 Maximum Usage (unit per week) 75 Re-order period (weeks) 4–6 You are required to calcualte re-order level: (A) 100 units (B) 200 units (C) 150 units (D) 450 units
(A) 100 units
(B) 200 units
(C) 150 units
(D) 450 units

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Inventory Control

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