ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A stock card shows the following information:maximum level-60, minimum level-25. On 1 March the balance was 50 and on 27 March the balance was 25. What quantity should be ordered to restore the level to maximum?
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25
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35
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50
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60
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Explanation:
Detailed explanation-1: -Calculating maximum inventory levels To calculate maximum inventory levels, use the following formula: maximum inventory levels = reorder point + reorder quantity – [minimum consumption × minimum lead time].
Detailed explanation-2: -Using the formula above, we can calculate your minimum inventory level like this: Minimum Inventory Level = Average Daily Demand x Average Time to Sell.
There is 1 question to complete.