What are the two main factors that need to be considered when automatic reorder points are being set?
A)Production capabilities and lead times.
B)Inventory storage capacity and cash flow.
C)Product availability and price.
D)None of the options are correct.

Question

Quizplus · Accepted Answer

The two main factors that need to be considered when automatic reorder points are being set are production capabilities and lead times. Production capabilities refer to the ability of the supplier to produce and deliver the products on time, while lead times refer to the time it takes for the products to be delivered to the customer. These factors are crucial in determining the reorder point to ensure that the stock level is optimized without causing stockouts or overstocking. Inventory storage capacity and cash flow and product availability and price are also important considerations when managing inventory, but they are not directly related to setting automatic reorder points.

What Are the Two Main Factors That Need to Be