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 (Average Demand x Lead Time) + Safety Stock. Here, it is (20 units/day x 4 days) + 50 units = 80 + 50 = 130 units.

If Average Demand for an Item Is 20 Units Per