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

Question

Quizplus · Accepted Answer

The fixed order interval model does not necessarily result in lower safety stock levels compared to an EOQ/ROP model. In fact, sometimes safety stock levels may be higher in the fixed order interval model to account for the longer interval between orders. A, B, D, and E are all valid reasons for using the fixed order interval model.

All of the Following Are Possible Reasons for Using the Fixed