The reorder point of an item is based on:
A)the rate of use.
B)the lead time.
C)automatic shipments.
D)both a and b.

Question

Quizplus · Accepted Answer

The reorder point of an item is determined by both the rate of use (demand) and the lead time to receive the item. Therefore, the best choice is D, as it includes both options. Automatic shipments are not a factor in determining the reorder point, as they are a result of the reorder point being reached.

The Reorder Point of an Item Is Based On