Question: An inventory decision rule states, When the inventory level goes down to 1 4 gearboxes, 1 0 0 gearboxes will be ordered. Which of the
An inventory decision rule states, "When the inventory level goes down to gearboxes, gearboxes will be ordered." Which of the following statements is TRUE?
Part
A
The number is a function of demand during lead time.
B
One hundred is the reorder point, and is the order quantity.
C
Fourteen is the safety stock, and is the reorder point.
D
Fourteen is the reorder point, and is the order quantity.
E
None of the above is true.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
