The Reorder Point Is Simplest to Compute When

question 26

Multiple Choice

The reorder point is simplest to compute when:

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

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Definitions:

Pepsi

A global brand of carbonated soft drinks produced and manufactured by PepsiCo.

Product Label

A piece of information on a product's package that provides details about the product, including ingredients, manufacturer, usage instructions, and safety warnings.

Business Perspective

A viewpoint or attitude towards the operations, strategies, and goals of a business or organization.

Secondary Package

The wrapper or exterior carton that contains the primary package and provides the UPC label used by retail scanners; can contain additional product information that may not be available on the primary package.