How to calculate the following inventory levels?

Submitted by: Administrator
a.) Re-order level = Maximum Lead Time x Minimum Lead Time

b.) Maximum level = Reorder Level + Reorder Quantity – (Minimum Usage x Minimum Lead Time)

c.) Minimum level = Reorder Level – (Normal Usage x Normal Lead Time)

d.) Danger level = Maximum Level x Lead time for Emergency purchases
Submitted by: Administrator

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