When calculating a reorder point (ROP),which of the following factors WOULD NOT affect the calculation?
A)Item's EOQ.
B)Delivery lead time.
C)Demand during the delivery lead time.
D)Standard deviation of demand during delivery lead time.
E)All of these would affect the ROP.

Question

Quizplus · Accepted Answer

The item's EOQ (economic order quantity) is used to calculate the optimal order quantity, but it does not directly impact the calculation of the reorder point (ROP). The delivery lead time, demand during the delivery lead time, and standard deviation of demand during the delivery lead time are all factors that have a direct impact on the ROP calculation. Therefore, the correct choice is A, since it would not affect the ROP calculation.

When Calculating a Reorder Point (ROP),which of the Following Factors