- June 19, 2023 at 4:27 pm #687242
Use of a re-order level builds in a measure of
safety inventory and minimises the risk of the
organisation running out of inventory. (TRUE)
My question is why this statement is true ?
Because In my point of view, Buffer inventory minimises the risk of stock out and also what this statement means “Use of a re-order level builds in a measure of
Thank youJune 20, 2023 at 8:13 am #687268
Having a reorder level means that you are placing a new order before you run out of inventory. That is automatically meaning that you have a buffer (or safety stock) to cover against a delay in receiving the new order.
Have you watched my free lectures on this? The lectures are a complete free course for Paper FM and cover everything needed to be able to pass the exam well.June 21, 2023 at 9:40 pm #687311
Then sir my question is could they give any question in which safety stock has been already given and they ask to calculate re-order level ?June 22, 2023 at 8:41 am #687321
Yes they could.June 22, 2023 at 8:22 pm #687339
Thank you sirJune 23, 2023 at 9:12 am #687345
You are welcome 🙂
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