- 1 Marks
MI – Nov 2014 – L1 – SA – Q6 – Accounting for Cost Elements-
Calculate the maximum inventory level based on usage and lead time.
Question
PQR Limited has an average usage of 1,200 units of stamps, minimum usage of 800 units, and maximum usage of 2,000 units per day. If the lead time is 10 – 15 days and the previously calculated Economic Order Quantity is 6,000 units, calculate the Maximum Level.
A. 30,000 units
B. 28,000 units
C. 18,000 units
D. 15,000 units
E. 8,000 units
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