If a Retailer Is Reviewing Its Inventory and Notices That

question 67

Multiple Choice

If a retailer is reviewing its inventory and notices that the order lead time for one of the products it stocks has increased, the retailer should

• A) decrease its reorder point.
• B) increase its reorder point.
• C) eliminate safety stock.
• D) increase the amount of safety stock.
• E) increase the usage rate of the product.

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Definitions:

Traveling Requisitions

Requests for goods or services that are initiated or approved while the requester is away from their primary office location.

Business Trips

Travel undertaken for work or business purposes, often involving meetings or inspections at locations away from the usual workplace.

Recurring Requirements

Ongoing or periodic needs that must be met regularly, such as monthly material orders or annual subscriptions.

Requisition

A formal or official request made within an organization, typically for goods or services.