When the operations manager determines a minimum level of inventory then reorders inputs when this level is reached, she is using
A) fixed-interval reordering.
B) a conversion process.
C) MRP.
D) fixed-point reordering.

Question

Quizplus · Accepted Answer

Fixed-point reordering, also known as reorder point system or minimum stock level reordering, involves setting a specific point at which inventory is reordered. When the inventory level falls to this predetermined minimum level, a new order is placed to replenish stock. This method ensures that inventory levels are sufficient to meet demand while minimizing holding costs.

When the Operations Manager Determines a Minimum Level of Inventory