Multiple choice

Zero lead time of supplies means

  1. we may not need to hold any inventory

  2. reorder points will have no relevance

  3. EOQ will have no relevance

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

If lead time is zero, goods arrive instantly upon ordering, rendering reorder points and traditional EOQ calculations (which rely on lead time and holding costs) irrelevant.

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