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INVENTORY CONTROL MANAGEMENT

An inventory decision rule states "when the inventory level goes down to14 gearboxes,100 gearboxes will be ordered." Which of the following statements is true?

A.100 is the reorder point, and14 is the order quantity.B.14 is the reorder point, and100 is the order quantity.C. The number100 is a function of demand during lead time.D.14 is the safety stock, and100 is the reorder point.

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Question added by Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG
Date Posted: 2015/03/03
Hany Helmy Haleem
by Hany Helmy Haleem , Director of Warehouses , Nasco Automotive

B.14 is the reorder point, and100 is the order quantity

 

Best regards

 

Harlyn Sedin
by Harlyn Sedin , RECEPTIONIST CUM SECRETARY , Star Appliance Center Inc

Letter: D.14 is the safety stock, and100 is the reorder point.

Mohammed Azhar Alam Khan
by Mohammed Azhar Alam Khan , Supervisor (Materials Planning & Warehouse Operations) , POWER & WATER UTILITY COMPANY (MARAFIQ)

B. is the reorder point and reorder quantity

Ani Kuriakose
by Ani Kuriakose , Managing Partner – SCM , A. A. Associates

B..14 is the reorder point, and100 is the order quantity."

when the inventory level goes down to reorder point, the Reorder Quantity 100 gearboxes will be ordered