Which of the following statements regarding the reorder point is TRUE?
A) The reorder point is that quantity that triggers an action to restock an item.
B) There is a reorder point even if lead time and demand during lead time are constant.
C) The reorder point is larger than d × L if safety stock is present.
D) A shorter lead time implies a smaller reorder point.
E) All of the above are true.
E
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a. true b. false
Which of the following is true of a destination contract containing a "no-arrival, no-sale" clause?
A) The seller is required to bear the expense and risk during transportation. B) The seller is required to replace any goods lost in transit. C) The buyer does not have to pay for destroyed goods. D) The risk of loss passes once the shipping has been arranged.