An Inventory Decision Rule States,"When the Inventory Level Goes Down

question 49

Multiple Choice

An inventory decision rule states,"When the inventory level goes down to 14 gearboxes,100 gearboxes will be ordered." Which of the following statements is TRUE?

• A)One hundred is the reorder point,and 14 is the order quantity.
• B)Fourteen is the reorder point,and 100 is the order quantity.
• C)The number 100 is a function of demand during lead time.
• D)Fourteen is the safety stock,and 100 is the reorder point.
• E)None of the above is true.

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Definitions:

Vocal Cords

The folds of mucous membrane in the larynx that vibrate to produce sound and speech.

Spasmodic

Relating to or affected by spasms, sudden involuntary muscle contractions that can be painful or uncomfortable.

Posterior Thigh

Refers to the back part of the thigh, encompassing muscles such as the hamstrings.

Biceps Femoris

A muscle of the posterior thigh that is part of the hamstrings, involved in knee flexion and thigh extension.