When Calculating a Reorder Point (ROP),which of the Following Factors

question 7

Multiple Choice

When calculating a reorder point (ROP) ,which of the following factors WOULD NOT affect the calculation?

• A)Item's EOQ.
• B)Delivery lead time.
• C)Demand during the delivery lead time.
• D)Standard deviation of demand during delivery lead time.
• E)All of these would affect the ROP.

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Definitions:

Nominal Gross Domestic Product

a measure of a country's economic output (all goods and services produced) valued at current market prices, without adjusting for inflation.

Consumer Price Index

is a measure that examines the weighted average of prices of a basket of consumer goods and services, often used to assess inflation.

Annual Rate

Refers to the yearly interest rate or growth rate applied to investments, loans, or any financial product that calculates earnings or payments over a year.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.