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"Calculate re-order level from the following:
Safety stock: 1000 units
Consumption per week: 500 units
It takes 12 weeks to reach material from the date of ordering"

A. 1000 units

B. 6000 units

C. 3000 units

D. 7000 units

Answer: Option D

Solution(By Examveda Team)

Re-order level = Safety stock + Total consumption
= 1000 + (500 × 12) = 1000 + 6000 = 7000 units.

This Question Belongs to Commerce >> Costing

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