If lead time is longer than the review period,the order quantity at any review point is the amount needed for the inventory on hand plus all outstanding orders needed to reach the replenishment level.

Question

Quizplus · Accepted Answer

This statement is true. When lead time is longer than the review period, the order quantity at any review point should cover the inventory on hand and any outstanding orders needed to reach the replenishment level. This is to ensure that there is enough inventory on hand to cover the lead time while waiting for the next replenishment order to arrive.

If Lead Time Is Longer Than the Review Period,the Order