Under Conditions of Certainty,a Reorder Point Is Equal To

question 32

Multiple Choice

Under conditions of certainty,a reorder point is equal to:

• A)average daily demand in units times the length of the replenishment cycle
• B)safety stock plus an EOQ
• C)base stock plus safety stock
• D)base stock minus safety stock

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Definitions:

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price, where the quantity supplied equals the quantity demanded.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in market balance.

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Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price, where the quantity demanded equals the quantity supplied.