I'm pretty sure C is false, because reorder point planning doesn't consider order cost. It's all about lead time, baby! As for the other options, well, I'm just hoping my guesses are as good as a Fortune 500 CEO's.
Aha, I see what they're getting at! A, B, and D are the winners here. Min-max is like a grand strategy game, while reorder point is more of a tactical, day-to-day approach. Now, if only I could get my boss to understand the importance of these methods...
I know what you mean about trying to get your boss on board with these methods. It can be tough to explain the importance of inventory replenishment, but hopefully they'll come around.
I agree, those three statements cover the key aspects of inventory replenishment methods. It's important to have a good balance between strategic and tactical approaches.
Maybe we can show them some examples of how these methods can save time and money. It's all about finding the right balance between the two approaches.
This is a tricky one, but I'm going to go with A, B, and D. Reorder point planning is all about minimizing stock-outs, so lead time is crucial. As for min-max, it's like a high-stakes game of Tetris with your inventory!
I'm pretty sure min-max planning can be done at the subinventory level, so E is definitely true. And I think you can set limits on the reorder point for both methods, so F is also correct.
Hmm, A, B, and D seem like the obvious choices. Min-max planning is all about balancing those costs, and reorder point planning depends on lead time. The other options sound a bit suspect to me.
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