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 = [(10,000 units ¡Â 50 weeks) ¡Á 4 weeks] + 1,300 units = 800 units + 1,300 units = 2,100 units<
Answer (A) is incorrect because This number of units is the sum of the order quantity units plus the safety stock in units.
Answer (C) is incorrect because This number of units equals the units of safety stock required.
Answer (D) is incorrect because This number of units does not include the safety stock.
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The reorder point is
