Jeff, a manager at the Flux Soap Store, lowered the reorder point for Butterscotch-Lemon soap from 33 percent of maximum to 20 percent of maximum.What is Jeff likely to observe?
A)The level of Butterscotch-Lemon soap in stock should increase.
B)Sales of Butterscotch-Lemon soap should decrease.
C)Sales of Butterscotch-Lemon soap should increase.
D)The level of Butterscotch-Lemon soap in stock should drop.

Question

Quizplus · Accepted Answer

Lowering the reorder point means that the level of Butterscotch-Lemon soap in stock should drop before a reorder is placed. Therefore, it is likely that Jeff will observe a decrease in the level of Butterscotch-Lemon soap in stock. There is no indication that sales would be affected by this change in the reorder point.

Jeff, a Manager at the Flux Soap Store, Lowered the Reorder