Without allowing for safety stock,what reorder point should be used to reorder Stein beer?
A) 0 cases remaining
B) 4 cases remaining
C) 12 cases remaining
D) 16 cases remaining
E) 20 cases remaining

Question

Quizplus · Accepted Answer

The reorder point is the level of inventory at which a new order should be placed to avoid stockouts. Without considering safety stock, the reorder point can be calculated using the following formula:

Reorder Point = Demand during lead time

Since the lead time is given as 2 weeks and the demand is 6 cases per week, the reorder point would be:

Reorder Point = 6 cases/week x 2 weeks = 12 cases

Therefore, the best choice would be C) 12 cases remaining.

Without Allowing for Safety Stock,what Reorder Point Should Be Used