Minimum Level is calculated as ........

Costing - Phase (I & II) Basics of Cost Control and Analysis

Minimum Level is calculated as:

Maximum Consumption (x) Maximum Reorder Period

Minimum Consumption (x) Minimum Reorder Period

Re-order level – (Normal Consumption x Normal Re-order Period)

None of the above

Minimum level/safety stock level is the level below which stock is not allowed to fall except in abnormal circumstances or in emergencies.

It is calculated as:

Re-order level – (Normal Consumption x Normal Re-order Period)

Where, Normal Consumption =

Minimum Consumption (+) Maximum Consumption /2

Normal Re-order Period =

Minimum Re-order Period (+) Maximum Re-order Period /2

Submit Error