If no variations in demand or lead time exist,the reorder point (ROP)will equal:
A)the EOQ.
B)the expected usage during lead time.
C)safety stock.
D)the service level.
E)the EOQ plus safety stock.

Question

Quizplus · Accepted Answer

If there are no variations in demand or lead time, then the reorder point (ROP) can be calculated as the expected usage during lead time. This is because the expected usage during lead time remains constant in this scenario, and the ROP reflects the point at which inventory should be reordered to cover the expected demand during the lead time. Therefore, the answer is B.

If No Variations in Demand or Lead Time Exist,the Reorder