When Demand and Delivery Lead Time Are Known and Constant,and

question 3

Multiple Choice

When demand and delivery lead time are known and constant,and demand is eight per day,and purchase lead time is four days,the reorder point is:

• A)3.
• B)8.
• C)32.
• D)35.
• E)56.

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Definitions:

After-Tax Discount Rate

The discount rate used in financial calculations that reflects the net cost of capital after accounting for the effects of taxes.

Discount Factor

A factor by which a future cash flow is multiplied to obtain its present value.

After-Tax Discount Rate

The interest rate used in discounted cash flow analysis to calculate the present value of future cash flows after accounting for taxes.

Income Tax Rate

The rate at which taxes are levied on an individual or company's income.