Which of the Following Statements Regarding the Reorder Point Is

question 155

Multiple Choice

Which of the following statements regarding the reorder point is not true?

• A)The reorder point is that quantity that triggers an action to restock an item.
• B)There is a reorder point even if lead time and demand during lead time are constant.
• C)The reorder point is larger than d x L if safety stock is present.
• D)The fixed-period model has no reorder point.
• E)The re-order point is not determinable.

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Definitions:

Market Segmentation

The division of a broad market into distinct subsets of consumers who have common needs, interests, and priorities, to tailor marketing strategies to those segments.

Homogenous Groups

Groups consisting of members who have similar backgrounds, demographics, or interests, leading to minimal diversity within the group.

Substantial

Of considerable importance, size, or worth; something that is significant or with a solid basis.

Market Segment

A subgroup of a larger market, defined by distinct characteristics, needs, or behaviors, that is targeted with specific marketing efforts.