The Reorder Point Is Calculated By

question 36

Multiple Choice

The reorder point is calculated by:

• A) average usage × safety stock + lead time
• B) average usage × safety stock × lead time
• C) average usage × lead time + safety stock
• D) safety stock × lead time + average usage

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Definitions:

Obedience

Compliance or adherence to instructions, commands, or laws.

Fiduciary

A person or entity entrusted to manage assets or interests of another with a duty to act in their best interest.

Trust

A fiduciary relationship in which one party holds legal title to property for the benefit of another.

Express Authority

The power granted to an agent or entity explicitly and clearly by the principal or by law.