Fixed-order-quantity systems assume a random depletion of inventory, with less than an immediate order when a reorder point is reached.
Answer the following statement true (T) or false (F)
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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