All of the Following Are Possible Reasons for Using the Fixed-Order-Interval

question 87

Multiple Choice

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

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

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Definitions:

Income Taxes

Taxes levied by governments on the income generated by businesses or individuals within their jurisdiction.

Income Tax Expense

The cost of taxes a company must pay based on its earnings, which can affect its net income and financial statements.

Income Tax Rate

The fraction of income that a business or individual must pay as tax.

After-Tax Discount Rate

The net discount rate applied to a project or investment after accounting for the effects of taxes.