Which one of the following is not true regarding the Fixed Period System (FPS) ?
A) The time between orders is constant, but the order quantity might vary.
B) An order is time-triggered, not inventory-triggered.
C) The optimal replenishment level includes the demand during the review period plus any desired safety stock.
D) When demand is not certain, the FPS requires more safety stock than the equivalent FQS.
Correct Answer:
Verified
Q42: Which of the following is incorrect regarding
Q43: Which one of the following statements concerning
Q44: Demand that incorporates uncertainty is called _.
A)Static
B)Dynamic
C)Stochastic
D)Deterministic
Q45: "The inability to satisfy the demand for
Q46: Backorders _.
A)Result from lost sales
B)Have little financial
Q48: Two fundamental inventory decisions are when to
Q49: Which one of the following statements is
Q50: Using a fixed quantity system (FQS), as
Q51: Inventory position is computed using all the
Q52: Which is not an advantage of the
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