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In the Planned Shortage Model, a Zero Value for R

Question 36

Multiple Choice

In the planned shortage model, a zero value for R, the reorder point, means:


A) reorder only when a customer appears.
B) instantaneous inventory replenishment.
C) reorder when the back-order position is zero.
D) reorder in a quantity equal to the back-order position.

Correct Answer:

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