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"Calculate Re-order level from the following:
Consumption per week: 100-200 units
Delivery period: 14-28 days"

A. 5600 units

B. 800 units

C. 1400 units

D. 200 units

Answer: Option B

Solution(By Examveda Team)

Maximum consumption per week = 200 unit Maximum delivery time = 28 days = 4 week Re-order level = 200 x 4 = 800 units.

This Question Belongs to Commerce >> Costing

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Comments ( 2 )

  1. Praveen Chauhan
    Praveen Chauhan :
    4 years ago

    its answer should be 28*200=5600

  2. Aditi Dhana
    Aditi Dhana :
    6 years ago

    PLEASE PROVIDE VALID EXPLANATION IT WILL HELPS ME A LOT

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