The need to place an order for inventory is specified by the

Question

Quizplus · Accepted Answer

The need to place an order for inventory is specified by the reorder point, which is defined as the inventory level at which a new order should be placed to avoid stockouts. Economic order quantity and company inventory policies may be used to determine the optimal quantity to order, but they do not dictate when to order. The stockout point is the point at which inventory is depleted and the company experiences a stockout, but it does not help determine when to reorder. Therefore, D (reorder point) is the best choice.

The Need to Place an Order for Inventory Is Specified