Formula of inventory levels
Write down the formula of the following inventory levels?
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i) Re-order level ii) Maximum level iii) Minimum level iv) Danger level i) Re-order level = Maximum Lead Time x Minimum Lead Time ii) Maximum level = Reorder Level + Reorder Quantity – (Minimum Usage x Minimum Lead Time) iii) Minimum level = Reorder Level – (Normal Usage x Normal Lead Time) iv) Danger level = Maximum Level x Lead time for Emergency purchases.
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