Re-ordering level $=$ Maximum consumption $\times$ __________.

Average re-order period

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Maximum usage

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Maximum re-order period

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Normal usage

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Solution

The correct option is C Maximum re-order period
Reorder level of inventory is that level at which company should place a new order.
This can be calculated by keeping the maximum consumption and the lead time in mind.

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=

\times

\frac{3}{6} : \frac{6}{9} : \frac{1}{3}; \frac{4}{9}

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