Management Notes

Reference Notes for Management

An inventory decision rule states

An inventory decision rule states

An inventory decision rule states

 Options:

A. One hundred is the reorder point, and 14 is the order quantity.
B. Fourteen is the reorder point, and 100 is the order quantity.
C. The number 100 is a function of demand during lead time.
D. Fourteen is the safety stock, and 100 is the reorder point.
E. None of the above is true.

The Correct Answer Is:

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

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