Which of the following statements regarding the reorder point is TRUE?

Which of the following statements regarding the reorder point is TRUE?



A) The reorder point is that quantity that triggers an action to restock an item.
B) There is a reorder point even if lead time and demand during lead time are constant.
C) The reorder point is larger than d × L if safety stock is present.
D) A shorter lead time implies a smaller reorder point.
E) All of the above are true.


Answer: E


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