Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Business Arithmetic

Question:
The ________________ is the level of inventory when a order should be made with the suppliers to bring the inventory up by the ___________.
Options:
EOQ, ROP
ROP, EOQ
ROP, BEP
EOQ, EBITDA
Correct Answer:
ROP, EOQ
Explanation:
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").