The three factors included in the calculation of the Reorder Point are ________.
A) demand, lead time, and safety stock
B) supply, price, and safety stock
C) demand, inventory, and price
D) supply, demand, and holding costs

Question

Quizplus · Accepted Answer

The calculation of the reorder point involves considering the demand for the product, the lead time required to receive the order, and the safety stock needed to ensure that stockouts do not occur. Therefore, option A with demand, lead time, and safety stock is the correct choice. Supply, price, inventory, and holding costs may be important factors in inventory management but are not directly used in calculating the reorder point.

The Three Factors Included in the Calculation of the Reorder