Determining When to Reorder Involves Two Factors: Rate of Use

question 9

Multiple Choice

Determining when to reorder involves two factors: rate of use and lead time.Which of the following statements defines lead time?

• A)Length of time it takes to produce the item ordered
• B)How much of the product is used in a specified period
• C)Amount of time required for supplies to arrive at the office once the order has been placed
• D)Amount of time added to the expected delivery date,so the office does not run out of supplies

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Definitions:

Percent Rate

The rate of a quantity in relation to 100; often used to describe the rate of interest, inflation, or growth.

Base

In financial terms, it often refers to the main or initial value from which adjustments, like interest or dividends, are calculated.

Cent

A monetary unit in various countries, equal to one hundredth of a dollar, euro, or other decimal currency unit.

Significant Figures

Digits in a number that contribute to its accuracy, indicating the precision of a measurement.