Multiple choice

Calculate average stock level if minimum stock level is 1,460 units and re-order quantity is 2,000 units.

  1. 2,460 units

  2. 2,000 units

  3. 2,500 units

  4. 2,350 units

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A Correct answer
Explanation

 It is 2,460 units. Average Stock Level = Minimum Level +  1/2 Re-order Quantity   Average Stock Level = 1,460 units + 1/ 2 X 2000 units   Average Stock Level = 1.460 units  +  2000 units                                                                   2   Average Stock Level = 1,460 units + 1000 units   Average Stock Level = 2,460 units 

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