Start learning →

Usage is 40 units a day, lead time 15 days, safety stock 200 units. Reorder point?

A600 units
B1,000 units
C640 units
D800 units
Answer & Solution
Correct answer: D. 800 units
Lead time consumption is 40 x 15 equal to 600, and adding safety stock of 200 gives 800 units.
Practise this question with Quill — CA Inter →

Keep practising Inventory Valuation

Browse all Inventory Valuation questions for CA Inter, or explore more Cost and Management Accounting topics.

Start a Inventory Valuation lesson →
Related questions