MANAGEMENT

Detailed explanation-1: -The maximum stock level is calculated taking into consideration factors such as capital, product consumption rate, available warehouse space, risk of deterioration and obsolescence, and economic order quantity, among others.

Detailed explanation-2: -This should include data and information relating to the risk profile, lead times, storage costs, costs of loss and demand rates.

Detailed explanation-3: -Maximum stock level: determined by the warehouse’s storage capacity and the purchasing or procurement policy. Minimum operating stock level: indicates the point of inventory consumption at which goods need to be replenished, just before the safety stock is used.

Detailed explanation-4: -Maximum stock level. It is the maximum level of goods that is maintained by a retail store. Beyond the maximum level of stock, the retailer should not order more goods, as it may increase the carrying cost.

Detailed explanation-5: -Maximum Level indicates the maximum stock to be maintained. This level is known as the maximum level beyond which a business will have to incur higher costs of maintaining the inventory. Factors like standard quantities of order, storage costs, etc. are used while calculating this level.