Reorder level ........

Costing - Phase (I & II) Lean System and Innovation

Download Solution PDF

Reorder level = ________

maximum level - minimum level

maximum consumption X maximum reorder period

minimum consumption x minimum reorder period

normal consumption X normal reorder period

छोटे Courses बड़े Results

Master Lean System and Innovation

Prepare through Micro-courses

Try Now

Explanation:

Reorder level = maximum consumption X maximum reorder period.
Reorder level is the inventory level at which a company would place a new order or start a new manufacturing run. Reorder level depends on a company's work-order lead time and its demand during that time and whether the company maintain a safety stock.