1.

Explain The Term Minimum Level Related To Inventory Levels?

Answer»

Minimum level: This level is FIXED below the re-order level but above the danger level. The level of stock should not be REDUCED below this level. If it does, then it involves the risk of non availability of material whenever REQUIRED.

This level is fixed after CONSIDERING two factors:

  • Rate of Consumption and Lead Time.

Minimum level: This level is fixed below the re-order level but above the danger level. The level of stock should not be reduced below this level. If it does, then it involves the risk of non availability of material whenever required.

This level is fixed after considering two factors:


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