If average demand for an item is 20 units per day, safety stock is 50 units, and lead time is four days, the ROP will be
A)20.
B)50.
C)70.
D)80.
E)130.

Name: If average demand for an item is 20 units per day, safety stock is 50 units, and lead time is four days, the ROP will be A)20. B)50. C)70. D)80. E)130.
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Question

Quizplus · Accepted Answer

The Reorder Point (ROP) is calculated as the sum of the product of average demand and lead time plus safety stock. Here, ROP = (20 units/day * 4 days) + 50 units = 80 + 50 = 130 units.

If Average Demand for an Item Is 20 Units Per