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:

Disposable Income

The budget left for household savings and spending after the deduction of income taxes.

Autonomous Consumption

The level of consumption that occurs when income is zero, representing basic necessities that individuals will purchase regardless of their income.

APC

It is defined as the proportion of income that goes into consumption expenses, termed as the Average Propensity to Consume.

Disposable Income

Fiscal assets at households' disposal for spending and saving after income taxes have been subtracted.