ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
The maximum order level is:
|
|
The amount of inventory that the business should not fall below
|
|
|
The amount of inventory that the business should not rise above
|
|
|
The time that it will take for the stock to be delivered to the business
|
|
|
The maximum amount of stock that the customer is allowed to order
|
Explanation:
Detailed explanation-1: -Reordering Level = Maximum Consumption Rate x Maximum Reorder period. Stock Level: Type 2. Maximum Level. It is the quantity of materials beyond which a firm should not exceed its stocks.
Detailed explanation-2: -The “Min” value represents a stock level that triggers a reorder and the “Max” value represents a new targeted stock level following the reorder. The difference between the Max and the Min is frequently interpreted as the EOQ (Economic Order Quantity).
There is 1 question to complete.