Examlex

Solved

If Average Demand for an Item Is 20 Units Per

question 48

Multiple Choice

If average demand for an item is 20 units per day, safety stock is 50 units, and lead time is four days, the ROP will be


Definitions:

Surplus

The amount of a good that is available exceeds the quantity demanded at the current price.

Price

Price is the amount of money required to purchase a good or service, determined by factors such as supply and demand, production costs, and market competition.

Surplus

Surplus refers to the situation where the quantity of a good or service supplied exceeds the quantity demanded, often leading to a decrease in prices.

Producer Surplus

Producer surplus is the difference between what producers are willing to accept for a good or service and the actual price they receive, reflecting the profit earned above production costs.

Related Questions