Question

If the demand during review cycle is equal to 12, the demand during lead time is 11, and the safety stock is equal to 8, what is the order point

Answer 1

the order point is 19

Step-by-step explanation:

The computation of the order point is shown below:

Order point is

= Demand during lead time + safety stock

= 11 + 8

= 19

hence, the order point is 19

We simply applied the above formula so that the correct value could come

And, the same is to be considered

And ignored the demand during review cycle as it is relevant for the calculation of the order point