Question $2$

$0\mathrm{.}95$ pt

An inventory decision rule states "when the inventory level goes down to $14$ gearboxes, $100$ gearboxes will be ordered." Which of the following statements is true?

One hunaled is the reorder point, and $14$ is the order quantity.

Fourteen is the reorder point, and $100$ is the order quantity.

The number $100$ is a function of demand during lead time.

Fourteen is the safety stock, and $100$ is the reorder point.

None