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3- If the minimum stock level and average stock level of raw material A are 8,000 and 18000 units respectively, find out its
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Answer #1

Answer:-

Average Level of stock = Minimum level of Stock + 1/2(re order quantity)

Reorder quantity = (Average level of stock - minimum level of Stock)*2

Reorder quantity = (18,000 - 8,000)*2

Reorder quantity = 20,000

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