When demand and delivery lead time are known and constant, the reorder point is the ____.
A) demand during the delivery lead time
B) safety stock
C) demand during lead time + safety stock
D) economic order quantity
E) average inventory

Question

Quizplus · Accepted Answer

The reorder point is the level of inventory at which a new order should be placed to avoid stock-out before the ordered items arrive. When demand and delivery lead time are known and constant, the reorder point is calculated as the demand during the delivery lead time. Therefore, the correct answer is A.

When Demand and Delivery Lead Time Are Known and Constant