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1.A supplier notified you that from here on the lead-time he required will become twice as long as before. What will happen to the Re-order
1.A supplier notified you that from here on the lead-time he required will become twice as long as before. What will happen to the Re-order point you used? You hold no safety stock.
a.It depends on the order size. Therefore, we cannot answer this question.
b.It really does not matter, as you are going to replace this supplier with another any-way.
c The reorder point will triple in size becauseR becomes R=DL + 2DL = 3DL
d. The reorder point will double in size.
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