The correct answer is D. Re-order level.
The re-order level is the minimum level of stock that must be maintained in order to avoid stockouts. When stock reaches the re-order level, a purchase requisition should be initiated to order more stock.
The average stock level is the average amount of stock that is held on hand over a period of time. The minimum stock level is the lowest amount of stock that should be held on hand at any time. The maximum stock level is the highest amount of stock that should be held on hand at any time.
It is important to maintain the correct stock levels in order to avoid stockouts and overstocking. Stockouts can lead to lost sales and customer dissatisfaction, while overstocking can lead to increased costs and storage space requirements.