Given that the minimum inventory level is 4,000 units and the average inventory level is 9,000 units for a raw material, what is the reorder quantity?

Choose the correct answer

Explanation

The reorder quantity is calculated as twice the difference between the average stock level and the minimum stock level: (9,000 - 4,000) × 2 = 10,000 units.

Given that the minimum inventory level is 4,000 unit… — Accounting Mcqs | PakQuizHub