Inventory Management MCQs

Danger Level = ?

April 29, 2022

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Danger Level = ?

Q. Danger Level = ?

A. (Maximum consumption × Lead time for emergency purchase

B. (Average consumption × Lead time for emergency purchase)

C. (Minimum × Lead time for emergency purchase

D. Ordering Level – (Average Usage × Re-order Period)

Answer: (Average consumption × Lead time for emergency purchase)

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Danger Level = ?

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