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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Definitions:

Channel Member

An entity that participates in the distribution channel, like manufacturers, wholesalers, and retailers, helping goods reach their final consumers.

Retailer's Responsibility

The accountability held by retail businesses to ensure the quality, safety, and ethical sourcing of their products, along with providing good customer service.

Customers' Expectations

The beliefs or standards that consumers have about the performance, value, and quality of goods or services.

High-end Hats

Premium quality hats that are often designer brands, crafted with superior materials, and sold at a higher price point.