Which of the Following Statements Is NOT TRUE Regarding the Fixed-Period

question 64

Multiple Choice

Which of the following statements is NOT TRUE regarding the fixed-period system (FPS) ?

• A) The time between orders is constant, but the order quantity might vary.
• B) An order is time-triggered, not inventory-triggered.
• C) The optimal replenishment level includes the demand during the review period, plus any desired safety stock.
• D) When demand is not certain, the FPS addresses stockouts by adding safety stock to the expected demand during time T + L.

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