The fixed order interval model would most likely to be used for which of the following situations?
A)A company has switched from mass production to lean production.
B)Production is done in batches.
C)Spare parts are ordered when a new machine is purchased.
D)Grouping orders can save shipping costs.

Question

Quizplus · Accepted Answer

The fixed order interval model is often used when companies want to consolidate orders to save on shipping or ordering costs, which aligns with option D. This model involves placing orders at regular intervals, which can be more efficient for managing inventory and reducing costs associated with frequent, smaller orders.

The Fixed Order Interval Model Would Most Likely to Be