Multiple choice

If the re-order level is 630 units, normal usage is 50 units and average re-order period is 6 weeks, how much is the minimum level?

  1. 330 units

  2. 630 units

  3. 300 units

  4. 50 units

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A Correct answer
Explanation

It is 330 units.Minimum Level                     = Re-order level  - ( Normal Usage X Average Re-order period )                         =   630  -  (  50 X 6 )                        =   630  - 300                        =  330 units   

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