The simple reorder technique assumes that the rate of usage is constant and that lead time is constant.

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The simple reorder technique (also known as the fixed order quantity method) assumes that the rate of usage and lead time are constant, which allows for easy calculation of the optimal order quantity and reorder point. In reality, however, these assumptions may not hold true and more advanced inventory management techniques may be necessary.

The Simple Reorder Technique Assumes That the Rate of Usage