The reorder point can be calculated by multiplying the usage rate by the order lead time and then adding in the number of safety stock.

Name: The reorder point can be calculated by multiplying the usage rate by the order lead time and then adding in the number of safety stock.
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Question

Quizplus · Accepted Answer

This is the correct formula for calculating the reorder point, which takes into account the expected usage rate, the time it takes to receive orders (lead time), and a safety stock buffer.

The Reorder Point Can Be Calculated by Multiplying the Usage