Consider the following conditions for an item used in the Hess Company's manufacturing process:
Which of the following statements best describes Hess's situation regarding inventory replenishment?
A) No action is required, since Hess's inventory position is greater than the reorder point.
B) Hess should order one lot of 50 units to cover its backorders.
C) Because it is incurring backorders, Hess should increase its reorder point.
D) Hess should place an order for 50 units, since their inventory position is less than the reorder point.

Question

Consider the following conditions for an item used in the Hess Company's manufacturing process: 
Which of the following statements best describes Hess's situation regarding inventory replenishment?
A) No action is required, since Hess's inventory position is greater than the reorder point. 
B) Hess should order one lot of 50 units to cover its backorders. 
C) Because it is incurring backorders, Hess should increase its reorder point. 
D) Hess should place an order for 50 units, since their inventory position is less than the reorder point.

Quizplus · Accepted Answer

The Answer of Consider the following conditions for an item used in the Hess Company's manufacturing process: 
Which of the following statements best describes Hess's situation regarding inventory replenishment?
A) No action is required, since Hess's inventory position is greater than the reorder point. 
B) Hess should order one lot of 50 units to cover its backorders. 
C) Because it is incurring backorders, Hess should increase its reorder point. 
D) Hess should place an order for 50 units, since their inventory position is less than the reorder point.

Consider the Following Conditions for an Item Used in the Hess