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

Operations Management


Edition: 10th
Authors:
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HplyEvrAftrHplyEvrAftr
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