Oracle E-Business Suite R12.1: Order Management Essentials — Question 12

Which three statements are true regarding Inventory replenishment methods? (Choose three.)

Answer options

• A. Min-max planning considers order cost.
• B. Min-max planning considers carrying cost.
• C. Reorder point planning considers order cost.
• D. Reorder point planning considers replenishment lead time.
• E. Min-max planning can be performed at the sublnventory level.
• F. When an item is defined, both reorder point planning and min-max planning can be specified toPlacelimits on the calculated reorder point.

Correct answer: C, D, E

Explanation

The correct answers are C, D, and E because reorder point planning does indeed consider order cost and replenishment lead time, while min-max planning can be executed at the subinventory level. Options A and B are incorrect as they incorrectly attribute order cost and carrying cost to min-max planning, which does not primarily focus on those factors.