A Fixed-Period (FPS) Inventory System

Multiple Choice

A fixed-period (FPS) inventory system:

A) orders a fixed-period quantity when the inventory position reaches or drops below the reorder point (r) .
B) chooses a replenishment level (M) which includes the demand during the review period and lead time, plus any safety stock.
C) maintains a constant order quantity every review period.
D) assumes that the demand for an item is constant and continuous, and that the items are withdrawn at a constant rate.