The key difference between a fixed-order quantity inventory model where demand is known and one where demand is uncertain is in computing the reorder point.

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In a fixed-order quantity inventory model with known demand, the reorder point is simply the level of inventory at which a new order is placed. However, in a model with uncertain demand, the reorder point must take into account the variability of demand and the lead time for receiving a new order.

The Key Difference Between a Fixed-Order Quantity Inventory Model Where