Which of the following affects the order point?
A)daily usage
B)lead time
C)safety stock
D)all of the above

Question

Quizplus · Accepted Answer

All of the factors listed (daily usage, lead time, and safety stock) can affect the order point. The order point is the level of inventory at which a new order should be placed, and it needs to take into account both the expected demand during lead time and any additional inventory needed to account for uncertainty or variability in demand. Daily usage affects how quickly inventory is depleted, lead time affects how long it takes to receive new inventory once an order is placed, and safety stock is a buffer that helps ensure enough inventory is on hand to meet unexpected demand or delays. Therefore, all of these factors need to be considered when determining the optimal order point.

Which of the Following Affects the Order Point