Question

If the daily demand is 40 units and the lead time is 12 days, the reorder point is

a.40 units
b.48 units
c.480 units
d.none of the above

Answer 1

The reorder point is calculated by multiplying the daily demand by the lead time. In this case, 40 units/day times 12 days equals 480 units.

Step-by-step explanation:

If the daily demand is 40 units and the lead time is 12 days, the reorder point is calculated by multiplying the two. So, the correct calculation to find the reorder point would be 40 units/day * 12 days = 480 units. Therefore, the correct answer is c.480 units.