An order system in which the order quantity is allowed to vary and the order cycle is fixed is called the:
A) periodic review system
B) two-bin system
C) reorder point system
D) red-tag system
E) none of the above

Question

Quizplus · Accepted Answer

In a periodic review system, the order is placed for a varying quantity after a fixed time interval or order cycle. This system allows for flexibility in the order quantity while maintaining a consistent order cycle, making it the best choice in this scenario. The two-bin system involves using two bins to indicate when inventory needs to be replenished and is not suitable for varying order quantities. The reorder point system involves replenishing inventory when it reaches a certain point, rather than at specific intervals, and is also not suitable for varying order quantities. The red-tag system is a visual inventory control system used to identify inventory that needs to be reviewed or disposed of and is not related to ordering.

An Order System in Which the Order Quantity Is Allowed