When Calculating a Reorder Point (ROP),which of the Following Factors

question 7

Multiple Choice

When calculating a reorder point (ROP) ,which of the following factors WOULD NOT affect the calculation?

• A)Item's EOQ.
• B)Delivery lead time.
• C)Demand during the delivery lead time.
• D)Standard deviation of demand during delivery lead time.
• E)All of these would affect the ROP.

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Definitions:

Stock Prices

The cost of purchasing a share of equity in a company, which fluctuates based on market conditions.

Shares Outstanding

The total number of a company's shares that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

2-for-1 Split

A stock split in which a company divides its existing stock into two shares, effectively halving the price of each share while doubling the number of shares owned by shareholders.

5-for-3 Split

A type of stock split where shareholders receive 5 shares for every 3 shares they hold, effectively increasing the share quantity and adjusting the stock price downward.