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:

Depreciation Expense

An accounting method used to allocate the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.

Temporal Method

A method of currency translation that uses exchange rates based on the time assets and liabilities were acquired or incurred.

Funds-Flow Statement

A financial statement that shows the inflows and outflows of funds from operations, financing, and investing activities, illuminating how a company's financial position changes over time.

Exchange Gains/Losses

The profit or loss resulting from foreign currency transactions due to changes in exchange rates.