Which of the Following Techniques Has the Reorder Point Based

question 67

Multiple Choice

Which of the following techniques has the reorder point based on each inventory item's sales rate?

• A) cyclical reordering
• B) reorder point (ROP) analysis
• C) ABC analysis
• D) EOQ models

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Definitions:

68-95-99.7 Rule

A statistical rule stating that in a normal distribution, about 68% of observed values fall within one standard deviation, 95% within two, and 99.7% within three standard deviations of the mean.

Normally Distributed

Describes a statistical distribution where data points are symmetrically distributed around the mean, forming a bell-shaped curve.

Standard Deviation

A statistical measure that represents the amount of variation or dispersion from the average in a set of data.

Assignable Cause

A specific factor or reason for variation in a process that can be identified and managed.