The cyclical or fixed order interval inventory system is a:
A) Time-based operation with periodic reviews
B) Form of MRP
C) System that works best with dependent demand
D) Control system for low value items
E) Inventory system best used in a job shop

Question

Quizplus · Accepted Answer

The cyclical or fixed order interval inventory system is a time-based operation with periodic reviews. This system involves placing orders at fixed intervals, for example, every two weeks or every month, rather than based on inventory levels. During each review period, inventory levels are checked, and orders are placed to bring inventory back up to a predetermined level. This system works well for items with stable demand and is less suited for items with sporadic demand or unpredictable lead times.

The Cyclical or Fixed Order Interval Inventory System Is A