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Fixed-time period models are used when demand is variable Group of answer choices True False

Question

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Solution

Answer:

The statement is False.

Explanation:

Fixed-time period models, also known as periodic review systems, are typically used in inventory management when demand is relatively stable or predictable. These models involve reviewing inventory levels at fixed intervals and placing orders to replenish stock up to a desired level. When demand is highly variable or unpredictable, more dynamic approaches, such as continuous review systems or more adaptive inventory management techniques, are typically more effective to avoid stockouts and reduce excess inventory.

In summary, fixed-time period models are best suited for stable demand conditions rather than variable demand conditions.

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