The Technique of Fixed-Order Quantity Involves a Company

question 76

Multiple Choice

The technique of fixed-order quantity involves a company:

• A) ordering exactly what is needed.
• B) specifying the number of units to order whenever an order is placed.
• C) placing a replenishment order whenever the on-hand inventory level falls below a minimum level.
• D) determining the order quantity using the total demand for the item in the next n months.
• E) ordering a quantity that will maintain the inventory at a predetermined maximum level.

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Definitions:

Dissonance Reduction

A psychological phenomenon where individuals alter their attitudes, beliefs, or behaviors to decrease the discomfort caused by inconsistencies between them.

Inconsistent Cognitions

The psychological state of having conflicting beliefs, attitudes, or thoughts, which can lead to discomfort and a drive to resolve the inconsistency.

Trivialize Cognitions

The process of minimizing or reducing the perceived importance or value of thoughts and beliefs.

Cognitive Dissonance

The psychological discomfort experienced when holding two or more conflicting cognitions (thoughts, beliefs, or attitudes).