Which of the following techniques has the reorder point based on each inventory item's sales rate?
A) cyclical reordering
B) reorder point (ROP) analysis
C) ABC analysis
D) EOQ models

Question

Quizplus · Accepted Answer

Reorder point (ROP) analysis determines the inventory level at which an order should be placed to ensure that the inventory level doesn't fall below a certain point. This technique takes into account each inventory item's sales rate and uses that to calculate the reorder point. Cyclical reordering involves ordering a set amount of inventory at fixed intervals, EOQ models calculate the optimal order quantity based on factors such as ordering cost and carrying cost, and ABC analysis categorizes inventory items based on their value and importance.

Which of the Following Techniques Has the Reorder Point Based