It is established taking into consideration Ordering Costs and Carrying Costs. Re-order level = maximum usage x maximum re-order period = 4 units x 20 days = 80 units a) Ordering Costs: These are those expenses incurred every time that an order is placed.
Re-order level = maximum paggamit x maximum re-order period = 4 units x 20 araw = 80 units a) Pag-order Gastos: Ito ang nangabilang na gastos na natamo sa bawat oras na ang isang order ay nakalagay.