Answer (B) is correct . The reorder point is the inventory level at which an order should be placed. It can be quantified using the following equation: Reorder point = (Average weekly demand ¡Á Lead time) + Safety stock = [(12,000 units ¡Â 50 weeks) ¡Á 5 weeks] + 1,500 units = 1,200 units + 1,500 units = 2,700 units<
Answer (A) is incorrect because This number of units equals the order size plus the safety stock.
Answer (C) is incorrect because This number of units omits safety stock.
Answer (D) is incorrect because This number of units is the average weekly usage.
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The reorder point is
