Question: Consider a continuous review inventory system. If the lead-time for orders for replenishment inventory increases from 4 to 6 days, then which of the following

Consider a continuous review inventory system. If the lead-time for orders for replenishment inventory increases from 4 to 6 days, then which of the following statements is most likely to be TRUE?

A) The reorder point (R) and the order quantity (Q) should increase

B) The reorder point (R) should increase and the order quantity (Q) should decrease

C) The reorder point (R) should increase and the order quantity (Q) should not change

D) Neither the reorder point (R) or the order quantity (Q) should change.

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