Question 4 The fixed order interval model would be most likely used for this sit
ID: 383049 • Letter: Q
Question
Question 4
The fixed order interval model would be most likely used for this situation:
a company has switched from mass production to lean production.
production is done in batches.
spare parts are ordered when a new machine is purchased.
grouping orders can save shipping costs.
none of these.
A.a company has switched from mass production to lean production.
B.production is done in batches.
C.spare parts are ordered when a new machine is purchased.
D.grouping orders can save shipping costs.
E.none of these.
Explanation / Answer
Answer is D.
The fixed order interval model means orders of inventory are placed at fixed time intervals (weekly, twice a month or monthly etc). Hence grouping orders for items from the same supplier can produce savings in shipping costs.
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