📊 GMAT Exam Prep

A table provides current inventory levels, reorder points, and average daily sales for five products (P1, P2, P3, P4, P5). Reorder occurs automatically when inventory hits the reorder point. Which product is expected to hit its reorder point earliest?

A P1 (Inventory: 100, Reorder: 50, Sales: 20/day)
B P2 (Inventory: 150, Reorder: 75, Sales: 25/day)
C P3 (Inventory: 200, Reorder: 100, Sales: 30/day)
D P4 (Inventory: 80, Reorder: 40, Sales: 15/day)

✓ Correct Answer: Option B

Calculate (Current Inventory - Reorder Point) / Average Daily Sales for each product to find days until reorder. P1: (100-50)/20 = 2.5 days. P2: (150-75)/25 = 3 days. P3: (200-100)/30 = 3.33 days. P4: (80-40)/15 = 2.67 days. P1 is earliest.

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