A Fixed-Period (FPS) Inventory System

question 90

Multiple Choice

A fixed-period (FPS) inventory system:

• A) orders a fixed-period quantity when the inventory position reaches or drops below the reorder point (r).
• B) chooses a replenishment level (M) which includes the demand during the review period and lead time, plus any safety stock.
• C) maintains a constant order quantity every review period.
• D) assumes that the demand for an item is constant and continuous, and that the items are withdrawn at a constant rate.

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