When seeking a responsive inventory system, the optimal choice would be:
A) Fixed-time period
B) EOQ
C) Periodic
D) Fixed-order quantity
E) None of the above

Question

Quizplus · Accepted Answer

Fixed-order quantity system is the most responsive inventory system as it allows for constant monitoring of inventory levels and allows for the immediate replenishment of stock as soon as the inventory level falls below the predetermined level. This system typically results in a lower inventory holding cost and a higher service level.

When Seeking a Responsive Inventory System, the Optimal Choice Would