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

Name: The average demand for an item is 20 units per day,safety stock is 50 units,and lead time is four days,the reorder point will be: A)20 B)50 C)70 D)80 E)130
Brand: Quizplus
Rating: 4.9 (44 reviews)

Question

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

Quizplus · Accepted Answer

The reorder point is calculated as (average demand per day * lead time) + safety stock = (20 * 4) + 50 = 130 units.

The Average Demand for an Item Is 20 Units Per