For a product-X, following information is available: Maximum consumption per week: 300 units Normal consumption per week: 200 units Re-order period: 2 to 4 weeks The re-order level will be —

CS Executive · Cost and Management Accounting · PYQS · June 2015
For a product-X, following information is available: Maximum consumption per week: 300 units Normal consumption per week: 200 units Re-order period: 2 to 4 weeks The re-order level will be —
(A) 400 units
(B) 1,200 units
(C) 600 units
(D) 800 units.

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Inventory Control

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