If Average Demand for an Inventory Item Is 200 Units

question 18

Multiple Choice

If average demand for an inventory item is 200 units per day,lead time is three days,and safety stock of 100 units is included,the reorder point (ROP) is:

• A)100 units
• B)200 units
• C)300 units
• D)600 units
• E)700 units

---

Definitions:

Determinant

A mathematical concept used in linear algebra, often to determine the non-singular or singular status of a matrix.

Level Of Investment

The amount of spending by firms on productive physical assets like machinery, buildings, and technology, at a given time.

Stock Prices

The current price at which a share of a company is traded on the stock market, influenced by various factors including company performance, market conditions, and investor sentiment.

Inventory Investment

Changes in the stocks of finished goods and raw materials that firms keep in reserve to meet orders.