Question: Question 8 . [Video-3. ROP] Consider the relationship ROP=D*LT+SS. Constant demand is 1560 items/year. How many statements are true? (A) 0 (B) 1 (C) 2

Question 8. [Video-3. ROP]

Consider the relationship ROP=D*LT+SS. Constant demand is 1560 items/year.

How many statements are true? (A) 0 (B) 1 (C) 2 (D) 3 (E) 4

Statement 1. If the lead time is 1 week and the safety stock is 10, then the reorder point is 50.

Statement 2. If the reorder point is 40 and the lead time is 1 week, then the safety stock is 20.

Statement 3. If the reorder point is 60 and the safety stock is 10, then the lead time is 1 week.

Statement 4. If the safety stock is 10, the lead time is 1 week, and the reorder point is 40, then the average inventory during the lead time immediately after the order is placed is 30.

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