Question $25(1\mathrm{.}4$ points$)$

An inventory decision rule is to place an order for $500$ units whenever the inventory level goes down to $55.$ Which of the following statements is true?

Question $25$ options:

the order point is $55,$ and the order quantity is $500$

$55$ is the safety stock, and the re$-$order point is $500$

$500$ is the safety stock, and $55$ is the re$-$order point

$500$ is the re$-$order point, and $55$ is the order quantity