The number of items that are ordered?

• A. Lead Time
• B. Maximum Stock Level
• C. Fixed Costs
• D. Re-Order Quantity

Answer: (D)

In inventory management, the key decision when replenishing stock is how much to order at once. The re-order quantity is exactly that: the quantity you order each time you place a replenishment to bring stock back up. So it answers how many items are ordered.

Lead time is about the delay between placing the order and receiving it, not the amount ordered. Maximum stock level defines the upper limit of on-hand inventory, not the size of an order. Fixed costs are costs that don’t vary with the order size, again not about how many units you order.