A Shortage Occurs in a Replenishment Cycle

question 71

Multiple Choice

A shortage occurs in a replenishment cycle

• A)only if the demand during the lead time exceeds the ROP.
• B)only if the demand during the lead time is less than the ROP.
• C)only if the demand during the lead time exceeds the average demand.
• D)only if the demand during the lead time is less than the average demand.

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Definitions:

Invested

Refers to funds that have been allocated into assets or projects with the expectation of earning a return.

Worth

The total value of all financial and non-financial assets owned by an individual or business minus any liabilities.

One-time Investment

An investment made in a lump sum, as opposed to investing in smaller, incremental amounts over time.

Valued

Considered to have a specific worth or significance, often in monetary terms but can also refer to non-monetary aspects like cultural or intrinsic value.