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True or False: Fixed-order quantity systems assume a random depletion of inventory, with less than an immediate order when a reorder point is reached?

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Question added by Abdou warshan , • مدير إدارة المخازن والنقل , شركة تمكين الدولية للأجهزة المنزلية
Date Posted: 2015/03/28
Hany Helmy Haleem
by Hany Helmy Haleem , Director of Warehouses , Nasco Automotive

True,

agree with Mr.Abdou warshan         

Best regards

Abdou warshan
by Abdou warshan , • مدير إدارة المخازن والنقل , شركة تمكين الدولية للأجهزة المنزلية

False

The fixed-order quantity system focuses on order quantities and reorder points. Procedurally, each time a unit is taken out of stock, the withdrawal is logged and the amount remaining in inventory is immediately compared to the reorder point. If it has dropped to this point, an order for Q items is placed. If it has not, the system remains in an idle state until the next withdrawal.

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