The Reorder Point Is Simplest to Compute When

question 25

Multiple Choice

The reorder point is simplest to compute when:

• A)both demand and purchase-order lead times are known with certainty
• B)the number of units sold varies
• C)the safety stock amount never varies
• D)the relevant ordering costs and the relevant carrying costs are equal

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Definitions:

Calories

Units of energy that measure the amount of energy food provides to the body when consumed.

Fat

A nutrient consisting of triglycerides that is one of the primary sources of energy for the body and is also vital for insulating the body and protecting organs.

Convulsions

Sudden, involuntary muscle contractions and relaxations, often symptomatic of a neurological condition.

Deficiency

A lack or shortage, particularly of nutrients or essential substances in the body, leading to health issues.