All of the following are possible reasons for using the fixed-order-interval model except:
Which of the following situation will the fixed order interval model would be most likely to be used?The fixed order interval model would be most likely to be used for this situation: Grouping orders can save shipping costs. Which item would be least likely to be ordered under a fixed order interval system? Which one of these would not be a factor in determining the reorder point?
What is fixed order interval model?The fixed interval stock management model consists of reordering a quantity (variable) at constant intervals (“T“) to bring available stocks back to a preset level, called the maximum stock level (“S“). The underlying assumptions are the same as for the order point model: Supplier lead time is known and constant.
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