Question: Below are true for both fixed-quantity and fixed-interval ordering , EXCEPT (More than 1 answer): A. In the fixed-quantity arrangement, orders are triggered by a
Below are true for both fixed-quantity and fixed-interval ordering , EXCEPT (More than 1 answer):
A. In the fixed-quantity arrangement, orders are triggered by a time, while in the fixed interval arrangement orders are triggered by a quantity (ROP).
B. In the fixed-quantity model, a higher-than-normal demand causes a shorter time between orders, whereas in the fixed-interval model, the result is a larger order size.
C. If both the demand rate and lead time are constant, the fixed-interval model and the fixed quantity model function identically
D. The fixed-interval model requires close monitoring of inventory levels in order to know when the amount on hand has reached the reorder point. The fixed-quantity model requires only a periodic review (i.e., physical count) of inventory levels just prior to placing an order to determine how much is needed.
E. The fixed-interval system must have stock out protection for lead time plus the next order cycle, but the fixed-quantity system needs protection only during lead time.
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