Using a Fixed Quantity System (FQS), as the Reorder Point

question 24

Multiple Choice

Using a fixed quantity system (FQS) , as the reorder point increases

• A)safety stock increases
• B)safety stock decreases
• C)the number of orders increases
• D)the number of orders decreases

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Definitions:

Continuous Improvement

Continuous improvement is an ongoing effort to enhance products, services, or processes through incremental and breakthrough improvements, aiming for efficiency and effectiveness in organizational operations.

Inventory Control

The management and optimization of the purchasing, storing, and selling processes of a business's inventory.

Lean Business Model

Lean Business Model is a strategic approach focused on creating more value for customers with fewer resources, by minimizing waste and optimizing efficiency.

Continuous Operations

The assumption that a business will continue its operations into the foreseeable future, not intending to nor expecting to go bankrupt or to significantly alter its operations.