Which One of the Following Is Not True Regarding the Fixed

question 50

Multiple Choice

Which one of the following 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 requires more safety stock than the equivalent FQS.

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Definitions:

Horizontal Merger

The combination of two or more firms competing in the same market with the same good or service.

Horizontal Merger

A merger between companies that operate in the same industry, often as direct competitors.

Supplier-Customer Relationships

This term refers to the interactions and dealings between a business that provides products or services and its buyers.

Conglomerate Merger

A merger between firms that are involved in totally unrelated business activities.