ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Reorder level determines how low inventory should be before reordering occurs.
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TRUE
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FALSE
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -Question: Which of the following is true regarding the reorder point? The reorder point tells you how much to order. The reorder point is defined by the difference between the set-up and carrying costs.
Detailed explanation-2: -The reorder level of stock is the fixed stock level that lies between the maximum and minimum stock levels.
Detailed explanation-3: -Reorder level is the stock level of a specific product and reorder quantity is the number of units to be ordered while placing a new purchase order. Calculating inventory reorder points helps with the reduction in inventory Cost, reduces stockouts, and improves forecasting.
There is 1 question to complete.