Which one of the following is not a determinant of the reorder point (ROP)?
A)Rate of demand
B)Length of lead time
C)Lead time variability
D)Stock-out risk
E)Purchase cost

Question

Quizplus · Accepted Answer

Purchase cost is not a determinant of the reorder point (ROP). The reorder point is determined by factors such as rate of demand, length of lead time, lead time variability, and stock-out risk. The purchase cost may impact the quantity ordered, but it is not a direct determinant of the ROP.

Which One of the Following Is Not a Determinant of the Reorder