What is the formula to determine the maximum supply level?

The maximum supply level is determined by the combination of the minimum level and the order quantity. This reflects the highest inventory level allowed or managed before additional reordering is required. When you add the order quantity to the minimum level, you effectively calculate how much inventory can be kept on hand beyond the minimum requirement.

This understanding is vital in inventory management because it helps organizations maintain sufficient stock to meet demand without overstocking. The minimum level indicates a threshold that ensures operations can continue smoothly, while the order quantity provides the additional units that can be obtained through restocking.

The emphasis on combining both minimum levels and order quantities enables a structure for inventory control that balances availability with financial efficiency. Hence, option C represents the correct approach to computing the maximum supply level.