On- Hand Inventory of an Item Is Only 10 Units

question 112

Multiple Choice

On- hand inventory of an item is only 10 units, and the reorder point R is 135. There are no backorders, and an open order of 110 units is scheduled to arrive next week. Which one of the following statements is TRUE?

• A) A new order should be issued now.
• B) There is no need to order at the present time.
• C) The current inventory position for this item is 125 units.
• D) The current inventory position for this item is 110 units.

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