If the order quantity is fixed,as in a continuous review system,the decision of when to place the order is determined by ______.
A)the daily demand rate and the lead time
B)the daily demand rate and the safety stock
C)the safety stock and the lead time
D)the safety stock and the purchase price

Question

Quizplus · Accepted Answer

In a continuous review system, the order quantity is fixed, so the decision of when to place the order is based on the daily demand rate and the lead time, which determine when the inventory level reaches the reorder point. The safety stock and purchase price may influence the order quantity, but not the timing of the order placement.

If the Order Quantity Is Fixed,as in a Continuous Review