When using the order point system which of the following is true?
A) order quantities are usually fixed
B) the order point depends upon the demand during the lead time plus safety stock
C) time intervals between orders are constant
D) a and b above
E) b and c above

Question

Quizplus · Accepted Answer

The order point system typically involves fixed order quantities (reorder quantity is constant) and the order point indeed depends on the demand during the lead time plus the safety stock to account for variability in demand and lead time.

When Using the Order Point System Which of the Following