Multiple Choice
Which of the following statements is NOT TRUE regarding the fixed-period system (FPS) ?
A) The time between orders is constant, but the order quantity might vary.
B) An order is time-triggered, not inventory-triggered.
C) The optimal replenishment level includes the demand during the review period, plus any desired safety stock.
D) When demand is not certain, the FPS addresses stockouts by adding safety stock to the expected demand during time T + L.
Correct Answer:
Verified
Correct Answer:
Verified
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