Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Business Arithmetic

Question:
------------------ is the level of inventory when order should be made with suppliers to bring the inventory up by the economic order quantity.
Options:
Economic order quantity
Safety Margin
Reorder Point
Order Lead Time
Correct Answer:
Reorder Point
Explanation:
Recorder point: The reorder point ("ROP") is the level of inventory when an order should be made with suppliers to bring the inventory up by the Economic order quantity ("EOQ").