Figure 7-1
Use the graph below to answer the question(s).

-In the absence of demand and delivery lead time uncertainty,reorder point is the ____.
A) demand during lead time
B) safety stock
C) sum of demand during lead time and safety stock
D) economic order quantity
E) average inventory

Question

Figure 7-1
Use the graph below to answer the question(s).
 
-In the absence of demand and delivery lead time uncertainty,reorder point is the ____.
A) demand during lead time 
B) safety stock 
C) sum of demand during lead time and safety stock 
D) economic order quantity 
E) average inventory

Quizplus · Accepted Answer

In the absence of demand and delivery lead time uncertainty, the reorder point is simply the demand during lead time. There is no need for safety stock, economic order quantity, or average inventory calculation in this scenario.

Figure 7-1 Use the Graph Below to Answer the Question(s)