An Order System in Which the Order Quantity Is Allowed

question 5

Multiple Choice

An order system in which the order quantity is allowed to vary and the order cycle is fixed is called the:

• A) periodic review system
• B) two-bin system
• C) reorder point system
• D) red-tag system
• E) none of the above

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Definitions:

Optimal Level

The most favorable balance or degree of any variable or condition for achieving maximum efficiency or effectiveness.

Public Good

A product or service that is available for all people to consume, without being depleted, regardless of who pays for it.

Public Good

Services or products are given freely to all members of society, supplied by either public institutions or private sectors, with no intention to profit.

Willingness To Pay

The maximum amount an individual is prepared to spend on a good or service, indicating the value they derive from the item.