Two Fundamental Inventory Decisions Are When to Order and How

question 71

Multiple Choice

Two fundamental inventory decisions are when to order and how much to order.Which of the following statement is true with respect to Fixed Quantity (FQS) and Fixed Period (FPS) inventory systems?

• A)A FPS orders a fixed period quantity when the inventory position reaches or drops below the reorder point (r).
• B)A FPS must cover a time period of T + L to cover the risk of a stock out.
• C)A FPS places an order for the economic order quantity every T time units.
• D)A FQS places an order to replenish the inventory position up to a target level (M) when the inventory position reaches the reorder point (r).

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Definitions:

Mass media audiences

Groups of people who engage with mass media content, such as television, radio, newspapers, and the internet, impacting and being impacted by the media.

Media imperialism

A situation where the media of a particular country overwhelmingly influences or dominates the culture and media landscape of another country, often leading to cultural homogenization.

Cultural studies

An interdisciplinary field that analyzes and criticizes the societal norms and practices, particularly those involving media and popular culture.

Cultural studies

An interdisciplinary field of research and theory focused on understanding the ways in which culture is produced, consumed, and interpreted.