Off Roadin' Inc

question 41

Multiple Choice

Off Roadin' Inc. builds customized ATVs. On average, it uses 40 tires a day in its manufacturing process. It takes 4 days to receive a shipment of tires once an order is placed. Off Roadin' has a
Policy of maintaining 80 tires as a safety stock. What is the reorder point level of inventory?

• A) 0
• B) 80
• C) 160
• D) 240
• E) 320

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Definitions:

Notes

Financial statements’ supplementary information, detailing the specific accounting policies, methodologies, and any additional information required for a full understanding of the financial position and performance.

Loans

Money lent to individuals, businesses, or other entities with the expectation of repayment with interest.

Equal Instalment Loans

Loans that are paid back in equal periodic payments, typically including both principal and interest components.

Interest Portion

The part of a payment that covers the interest or cost of borrowing, as distinguished from principal or repayment of the borrowed amount.