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On- Hand Inventory of an Item Is Only 10 Units

Question 112

Multiple Choice

On- hand inventory of an item is only 10 units, and the reorder point R is 135. There are no backorders, and an open order of 110 units is scheduled to arrive next week. Which one of the following statements is TRUE?


A) A new order should be issued now.
B) There is no need to order at the present time.
C) The current inventory position for this item is 125 units.
D) The current inventory position for this item is 110 units.

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