Busıness Fınance I Deneme Sınavı Sorusu #1387853

Which inventory level is below of the minimum level?


Average stock level

Maximum level

Re-order level

Default level

Danger level


Yanıt Açıklaması:

Danger level is the level below the minimum level. It leads to stoppage of the production process. It is calculated as the formula below:

Danger Level = (Average Consumption)x(Maximum reorder period for emergency purchase)

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