Answer the following question(s)using the information below:
The following information has been gathered for Product A:

-Which of the following statements is TRUE?
A)The reorder point is the point at which the amount of inventory on hand equals the amount needed to cover sales during the lead time.
B)The reorder point is the minimum level of inventory allowed during a particular period.
C)The safety stock is the amount of stock that must be on hand to cover sales during lead time.
D)The safety stock is the minimum level of inventory that must remain on hand at all times.
E)The safety stock is the minimum level of inventory that must remain at the customers.

Question

Answer the following question(s)using the information below:
The following information has been gathered for Product A:
 
-Which of the following statements is TRUE?
A)The reorder point is the point at which the amount of inventory on hand equals the amount needed to cover sales during the lead time. 
B)The reorder point is the minimum level of inventory allowed during a particular period. 
C)The safety stock is the amount of stock that must be on hand to cover sales during lead time. 
D)The safety stock is the minimum level of inventory that must remain on hand at all times. 
E)The safety stock is the minimum level of inventory that must remain at the customers.

Quizplus · Accepted Answer

The reorder point is the inventory level at which a new order should be placed to ensure that stock does not run out during the lead time.

Answer the Following Question(s)using the Information Below