Figure 7-1 Use the Graph Below to Answer the Question(s)

question 22

Multiple Choice

Figure 7-1
Use the graph below to answer the question(s) .

-In the absence of demand and delivery lead time uncertainty,reorder point is the ____.

• A) demand during lead time
• B) safety stock
• C) sum of demand during lead time and safety stock
• D) economic order quantity
• E) average inventory

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Definitions:

Self-Fulfilling Prophecy

A prediction that ensures, by the behavior it generates, that it will come true.

Counterfactual Thinking

The psychological process of imagining alternative outcomes or scenarios that did not actually happen, often starting with "What if..."

Regret

A feeling of sadness, repentance, or disappointment over something that one has done or failed to do.

False Consensus Effect

The cognitive bias to overestimate how much others share one’s beliefs, attitudes, and behaviors.