$15$

Multiple Choice

$2$ points

$\frac{15}{50}$

Which of the following best explains the main difference between a fixed time period system and a fixed order quantity system?

The fixed time period system orders inventory at regular intervals, while the fixed order quantity system orders inventory when it reaches a specific reorder point, but the order quantity always varies.

The fixed time period system orders a consistent quantity at regular intervals, while the fixed order quantity system orders variable amounts whenever inventory reaches a predetermined reorder point.

The fixed time period system focuses on ordering at set intervals based on demand, while the fixed order quantity system places a fixed quantity order but at varying intervals based on inventory usage.

The fixed time period system relies on constant inventory monitoring, while the fixed order quantity system requires less frequent inventory checks but increases safety stock requirements.