Discussion
Re-order level for an item is always :
Answer: B
The re-order level is always more than the minimum stock.
The re-order level is the stock at which a new order is placed. It must cover the demand during the lead time on top of the minimum (safety) stock, so
\[ \begin{aligned} &\text{re-order level} \\ &= \text{minimum stock} + \text{lead-time consumption} \end{aligned} \]
(in the standard formula, maximum usage times maximum lead time). With positive lead-time demand it is always above the minimum stock, so it cannot be less than or equal to it. It is usually below the average stock, since stock runs down to it from the maximum level.
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