Jeff, a manager at the Flux Soap Store, notices that the store regularly runs out of Jasmine-Berry soap.Currently, the reorder point is fixed when inventory reaches 40 percent of maximum.Which adjustment should Jeff make in a fixed-point reordering system?
A)Jeff should lower the reorder level to a point where inventory of Jasmine-Berry soap is at 30 percent of maximum.
B)Jeff should lower the reorder level to a point where inventory of Jasmine-Berry soap is at 10 percent of maximum.
C)Jeff should raise the reorder level to a point where inventory of Jasmine-Berry soap is at 50 percent of maximum.
D)Jeff should lower the reorder level to a point where inventory of Jasmine-Berry soap is at half of the previous level.

Question

Quizplus · Accepted Answer

Raising the reorder level to a point where inventory is at 50 percent of maximum ensures that the store reorders Jasmine-Berry soap before running out, addressing the issue of regularly running out of stock. Lowering the reorder level would exacerbate the problem.

Jeff, a Manager at the Flux Soap Store, Notices That