All of the following are possible reasons for using the fixed order interval model except:
A)that supplier policy encourages use.
B)that grouping orders of items held in inventory can save in shipping costs.
C)that the level of safety stock required is lower than with an EOQ/ROP model.
D)that it is suited to periodic checks of inventory levels rather than continuous monitoring.
E)that continuous monitoring is not practical.

Question

Quizplus · Accepted Answer

The fixed order interval model does not result in a lower level of safety stock compared to the Economic Order Quantity (EOQ)/Reorder Point (ROP) model. In fact, the level of safety stock may be higher due to the fixed interval between orders. The other options are all possible reasons for using the fixed order interval model.

All of the Following Are Possible Reasons for Using the Fixed