Which of the following statements regarding the reorder point is TRUE?
A)The reorder point is that quantity that triggers an action to restock an item.
B)There is a reorder point even if lead time and demand during lead time are constant.
C)The reorder point is larger than d × L if safety stock is present.
D)A shorter lead time implies a smaller reorder point.
E)All of the above are true.

Question

Quizplus · Accepted Answer

All the statements are true: A) defines the reorder point, B) indicates that a reorder point exists even with constant lead time and demand, C) explains that safety stock increases the reorder point, and D) states that a shorter lead time reduces the reorder point.

Which of the Following Statements Regarding the Reorder Point Is