The Reorder Point Can Be Calculated by Multiplying the Usage

question 207

True/False

The reorder point can be calculated by multiplying the usage rate by the order lead time and then adding in the number of safety stock.

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Definitions:

Photosynthesis

The process by which green plants and certain other organisms transform light energy into chemical energy, using carbon dioxide and water to produce glucose and oxygen.

Cellular Respiration

A biochemical process in living organisms where glucose is broken down in the presence of oxygen to produce carbon dioxide, water, and energy in the form of ATP.

Aerobic Respiration

Aerobic respiration is a metabolic process in which cells convert glucose and oxygen into energy, carbon dioxide, and water.

Carbon Dioxide

Carbon dioxide is a colorless, odorless gas produced by burning carbon and organic compounds and by respiration, absorbed by plants in photosynthesis.