In a continuous review inventory system,if daily usage is 20 units and lead-time is 5 days,the reorder point will be when on-hand inventory is
A)100 units.
B)4 units.
C)5 units.
D)25 units.

Name: In a continuous review inventory system,if daily usage is 20 units and lead-time is 5 days,the reorder point will be when on-hand inventory is A)100 units. B)4 units. C)5 units. D)25 units.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The reorder point is calculated as daily usage multiplied by lead time. So, 20 units/day * 5 days = 100 units.

In a Continuous Review Inventory System,if Daily Usage Is 20