The data used to calculate the order point include all of the following except:
A)the costs of placing an order.
B)the rate at which the material will be used.
C)the estimated time interval between the placement and receipt of an order.
D)the estimated minimum level of inventory needed to protect against stockouts.

Question

Quizplus · Accepted Answer

The data used to calculate the order point includes the rate at which the material will be used, the estimated time interval between the placement and receipt of an order, and the estimated minimum level of inventory needed to protect against stockouts. The costs of placing an order are used to calculate the economic order quantity, which is a separate calculation from the order point.

The Data Used to Calculate the Order Point Include All