Question

One requirement of a fixed order interval system is that the inventory must be constantly monitored

Select one:

True

False

Answer 1

Answer: True

Fixed Order Interval System is a strategy for the stock control framework. It is otherwise called a fixed reorder cycle stock model. In this, a fixed stretch is created by checking the interest of the item. It is utilized in dealing with the gracefully of the crude material.

In a fixed framework, the stock levels are assessed and an occasional calendar of fixed requests is created. This activity is created based on a schedule. Stock levels allude to the stock or the stock kept in the distribution center of the association.

Fixed Order framework includes an ordinary check of the stock in order to build up a time period. It is significant for the productive and compelling tasks of the association. Therefore, there is no excess stock kept in the stockroom. In this manner, the expense of putting away stock is diminished.

The provider of the crude material acknowledges this technique for the stock framework as there is no vulnerability of changing the requests. Providers know the amount and the time span of reordering. In this way, the stock isn't kept inactive in the stockroom. It is conveyed according to the hour of its necessity. In this manner, the provider is made sure about as there are fewer odds of exchanging the provider.