Supply Chain Management Professional (SCMP) · Question
Which inventory management system is characterized by triggering an order when stock levels fall to a predetermined reorder point?
A fixed-order quantity system places an order for a constant amount when inventory reaches a specific reorder point.
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Question: Which inventory management system is characterized by triggering an order when stock levels fall to a predetermined reorder point?
Answer options:
- Just-in-Time (JIT)
- Materials Requirements Planning (MRP) ✅ Fixed-order quantity system
- Vendor Managed Inventory (VMI)
Correct answer: Fixed-order quantity system
Explanation: A fixed-order quantity system places an order for a constant amount when inventory reaches a specific reorder point.
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