Answer :

The reorder point represents approximately 1.67 days of supply. Therefore, the correct option is c. 1.67.

The reorder point is a critical inventory management metric that signifies the inventory level at which a new order should be placed to replenish stock before it runs out. In terms of days of supply, it indicates the number of days it takes for inventory to be depleted from the reorder point until the new order arrives. This calculation is vital for ensuring uninterrupted supply chain operations and preventing stockouts.

To calculate the reorder point in terms of days of supply, one needs to consider factors such as lead time, demand variability, and desired service level. By knowing the reorder point in days of supply, businesses can effectively plan their inventory levels to meet customer demand while minimizing excess inventory costs.

Choosing the correct reorder point is crucial for maintaining optimal inventory levels, as setting it too low can result in stockouts and lost sales, while setting it too high can tie up capital in excess inventory. Therefore, understanding the reorder point in terms of days of supply enables businesses to strike the right balance between meeting demand and managing costs. Therefore, the correct option is c. 1.67.

The complete question is "What does the reorder point represent in terms of days of supply? Group of answer choices

a. 1.57

b. 1.87

c. 1.67

d. 1.47."

Thanks for taking the time to read What does the reorder point represent in terms of days of supply A 1 57 B 1 87 C 1 67 D 1 47. We hope the insights shared have been valuable and enhanced your understanding of the topic. Don�t hesitate to browse our website for more informative and engaging content!

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