Which One Of These Would Not Be A Factor In Determining The Reorder Point?A The EOQB The Lead TimeC

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C) the variability of demand

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B) the lead time

This is a price ceiling or a maximum price, which probably will be below equilibrium and mean that quantity demanded exceeds quantity supplied. The inventory level at which a decision to reorder that specific stock of inventory is made is known as the reorder point (ROP). It is the minimum quantity of an item that a company has on hand; when stock falls below this quantity, a new order for the item is required. It is typically calculated as the anticipated usage during the lead period for replenishment plus safety stock. The EOQ (Economic Order Quantity) model made the assumption that there is no delay between placing an order and receiving the materials. When the amount of inventory becomes zero, the reorder point for stock replenishment occurs.

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Which one of these would not be a factor in determining the reorder point?

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Due to the immediate replenishment of stock, the level of inventory increases from zero to the original amount. The standard deviation of demand during lead time equals the daily standard deviation of demand times the square root of the lead time. The standard deviation of demand during lead time is the square root of squared demand times the squared standard deviation of lead time.

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