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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.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: 2015/03/14
Hany Helmy Haleem
by Hany Helmy Haleem , Director of Warehouses , Nasco Automotive

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

The reorder point is the inventory level when reached a purchase/production order initiated.

 

Mohammed Thiab
by Mohammed Thiab , Founder / Chief Consultant , MV Consulting

B is the right answer to this question

 

Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

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

Muhammad Sajjad Khawaja
by Muhammad Sajjad Khawaja , Logistics Assistant Port & Operations , United Nations - World Food Programme

Option B is Correct Answer

Answer is option A.100 is the reorder point, and14 is the order quantity.

Khurram Shaukat Memon
by Khurram Shaukat Memon , Academic Research Writer , Freelance Academic Research Writer

Correct answer is option (b)

Kaushik  Gupta
by Kaushik Gupta , General Manager Purchase , Ruchi Realty Ltd

Option B is the correct one.

Mohammed Fathe  Shaheem
by Mohammed Fathe Shaheem , Operation Executive , Arabian Construction Company

B....................................

Emely Alop
by Emely Alop , Senior Accountant , Joint Venture Itinera Spa and Ghantoot Transport & Gen. Contg. LLC

I believe the right application is option B.

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