“Calculate re-order level from the following: Safety stock: 1000 units Consumption per week: 500 units It takes 12 weeks to reach material from the date of ordering”

The correct answer is C. 3000 units.

The reorder level is the level of inventory at which a new order should be placed. It is calculated by taking into account the following factors:

• Safety stock: The amount of inventory that is kept on hand to protect against unexpected demand or delays in delivery.
• Consumption per week: The rate at which inventory is used up each week.
• Lead time: The amount of time it takes to receive an order after it is placed.

In this case, the safety stock is 1000 units, the consumption per week is 500 units, and the lead time is 12 weeks. Therefore, the reorder level is:

Reorder level = Safety stock + Consumption per week * Lead time
= 1000 + 500 * 12
= 3000 units

The other options are incorrect because they do not take into account all of the factors that need to be considered when calculating the reorder level.