Question

Almost certainly you have seen vending machines being serviced on your campus and elsewhere. On a predetermined schedule the vending company checks each machine and fills it with various products. This is an example of which category of inventory model?
a. Fixed Order Model
b. Fixed Time Period Model
c. Single time period model
d. Fast fill Model

Answer 1

Answer:

B. Fixed Time Period Model.

Explanation:

Fixed time period model: It is referred to as an inventory model that counts inventory at every fixed interval of time, like every week, every fortnight, or every month. It generates order quantity, which varies from time to time, depending on the usage rate. There is no fixed order quantity in this inventory system, however, it required higher reserved stock to match the order quantity as a vendor needs to make a periodic visit for counting inventory and place the order as required.