Question

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.
   
   1. It depends on the order size. Therefore, we cannot answer this question.
      
   2. It really does not matter, as you are going to replace this supplier with another any-way.
      
   3. The reorder point will triple in size because R becomes R=DL + 2DL = 3DL
      
   4. The reorder point will double in size.
      
2. If the lead time L is equal to the cycle time T, then
   
   1. You can disregard the lead-time and order every two cycles.
             
   2. The re-order point is equal to the order size
      
   3. Change your supplier, because it is too hard to handle this one.

Answer 1

Q1. d. The reorder point will double in size

Reorder point = DL

Explanation: If lead time is twice as long as before. then new reorder point = D*2L = 2DL, which means reorder point will double

Q2. b. The reorder point is equal to the order size

Explanation: Order quantity is equal to the mean demand during cycle time and reorder point is equal to the mean demand during lead time (assuming no safety stock). If lead time is equal to the cycle time, then reorder point is equal to the order quantity.