BUISENESS MANAGEMENT
INVENTORY CONTROL
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The reliability of the supplier would be taken into account when considering reorder levels?
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True
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False
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -To calculate the reorder level, multiply the average daily usage rate by the lead time in days for an inventory item.
Detailed explanation-2: -A reorder point is crucial for effective inventory management. It saves holding costs and prevents stockouts, overstocking, and lost sales by ensuring that sufficient stock is always available in your inventory.
Detailed explanation-3: -To decide on the reorder levels for stock items, consider the following: The lead-time for suppliers to deliver the stock. The delivery time specified by the customer. The stock-in-hand to satisfy existing orders.
There is 1 question to complete.