Supply Chain Management Professional (SCMP) · Question
Reorder Point with constant demand: ROP = ?
ROP = average demand during lead time + safety stock.
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Question: Reorder Point with constant demand: ROP = ?
Answer options: ✅ Avg demand × lead time + safety stock
- EOQ × 2
- Annual demand / 12
- Holding cost / order cost
Correct answer: Avg demand × lead time + safety stock
Explanation: ROP = average demand during lead time + safety stock.
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