All of the following are possible reasons for using the fixed-order-interval model except
A)supplier policy encourages use.
B)grouping orders can save in shipping costs.
C)the required safety stock is lower than with an EOQ/ROP model.
D)it is suited to periodic checks of inventory levels rather than continuous monitoring.
E)continuous monitoring is not practical.

Question

Quizplus · Accepted Answer

The fixed-order-interval model does not inherently result in lower safety stock compared to the Economic Order Quantity (EOQ)/Reorder Point (ROP) model. Safety stock levels depend on demand variability and lead time, not the inventory model used.

All of the Following Are Possible Reasons for Using the Fixed-Order-Interval