All of the Following Are Possible Reasons for Using the Fixed

question 131

Multiple Choice

All of the following are possible reasons for using the fixed order interval model except:

• A)that supplier policy encourages use.
• B)that grouping orders of items held in inventory can save in shipping costs.
• C)that the level of safety stock required is lower than with an EOQ/ROP model.
• D)that it is suited to periodic checks of inventory levels rather than continuous monitoring.
• E)that continuous monitoring is not practical.

---

Definitions:

Sum Squares Treatments (SST)

The total variation attributed to different treatments in an analysis of variance (ANOVA) context, measuring the difference between treatment means and the overall mean.

Mean Square Treatments

In the context of ANOVA, a measure of variance among the means of different groups, calculated by dividing the sum of squares due to treatment by the degrees of freedom for treatment.

F-test

A statistical test used to compare two variances and ascertain if they come from populations with equal variances.

Total Variation

Refers to the overall difference between individual values and the mean within a dataset, capturing the spread.