Assuming No Safety Stock, What Is the Reorder Point (R)

question 18

Multiple Choice

Assuming no safety stock, what is the reorder point (R) given an average daily demand of 78 units and a lead time of 3 days?

• A) 421
• B) 234
• C) 78
• D) 26
• E) 312

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Definitions:

Variability

The measure of how much the scores in a data set differ from each other and from the mean.

Equation Interpretation

The process of explaining the meaning of a mathematical equation, including how variables and constants represent real-world quantities and relationships.

F Value

A statistic obtained in analysis of variance (ANOVA) testing, used to determine whether the means of several groups are equal or show significant differences.

F-Tests

A group of statistical tests that compute the ratio of variances to analyze the statistical significance of the differences between means.