question archive Which of the following statements regarding the reorder point is true? a
Which of the following statements regarding the reorder point is true? a
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Which of the following statements regarding the reorder point is true?
a. The reorder point is that quantity that triggers an action to restock an item.
b. There is a reorder point even if lead time and demand during lead time are constant.
c. The reorder point is the amount of inventory on hand through the lead time.
d. The fixed-period model has no reorder point.
e. All of the above are true.
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The correct answer is Option (e) All the above options are correct.
Explaination
With the definition The Reorder Point is a point in which a company has minimum stock that has to be again replenished when stocks reaches at this level. Thats why the above option (A) and (C) relates with the definition. There is also a reorder point when lead time and demand during lead time are constant, thats why Option (B) is correct and there is no Reoder Point in fixed-period model thats why option (D) is also correct.
