Which one of the following is not generally a determinant of the reorder point?
A)rate of demand
B)length of lead time
C)lead time variability
D)stockout risk
E)purchase cost

Question

Quizplus · Accepted Answer

The reorder point is primarily determined by factors that affect the timing of when new inventory needs to be ordered to avoid stockouts, such as the rate of demand, length of lead time, lead time variability, and stockout risk. Purchase cost, however, affects the order quantity rather than the timing of when to reorder.

Which One of the Following Is Not Generally a Determinant