What is the reorder point in the EOQ model?
A)the day of the month for reordering
B)when all of the inventory has been used
C)when the inventory level is below the order quantity
D)the inventory level at which an order for additional units is placed

Question

Quizplus · Accepted Answer

The reorder point in the EOQ model is the inventory level at which an order for additional units is placed. This is the level at which the inventory is depleted enough that it triggers the need for a new order to be placed, in order to maintain a certain level of inventory on hand.

What Is the Reorder Point in the EOQ Model