All of the Following Are Possible Reasons for Using the Fixed

question 160

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:

Output/Input

A measure of efficiency that compares the quantity or quality of outputs (results, products) generated by a system to the inputs (resources, time) used.

Productivity

The measure of how efficiently resources are used to produce outputs.

Inputs

Resources used in the production process to generate outputs, including raw materials, labor, and capital.

Transformed Into Outputs

The process of converting inputs such as raw materials, labor, and energy into finished goods or services.