Because the fixed-quantity system orders the same amount each time, time between orders will be constant, even with variable demand.

Name: Because the fixed-quantity system orders the same amount each time, time between orders will be constant, even with variable demand.
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Question

Quizplus · Accepted Answer

The time between orders in a fixed-quantity system varies because the rate of demand affects how quickly the inventory level reaches the reorder point, even though the order quantity remains constant.

Because the Fixed-Quantity System Orders the Same Amount Each Time