Question

Explain the terms (a) maximum level (b) minimum level and (c) recorder level of inventories

Answer 1

Answer:

inventory levels are tells that to purchase or stop purchase the raw material.

minimum level tells us to maintain stock levels all the time and stock level should not less than less.

there is a chance stop the production without raw material if we maintain less than this level

maximum level tell that we shouldn't not purchase goods behind this level. any purchase beyot thia level is our money kept idol in way of stock.

reoder level tells that to place a order if stock reaches this level. to maintain continue production