What effect on a company's reorder point would increasing the safety stock from 5 to 15 units have?
A) The reorder point will fall by 10 units.
B) The reorder point will increase by 10 units.
C) The reorder point will increase by 10 percent.
D) The answer cannot be determined on the basis of the material provided.

Question

Quizplus · Accepted Answer

Increasing the safety stock by 10 units directly increases the reorder point by the same amount, as the reorder point is calculated as the sum of the lead time demand and safety stock.

What Effect on a Company's Reorder Point Would Increasing the Safety