Answer to Question #201727 in Management for Anathi Tobigunya

Question

Kabelo is responsible for ordering the materials required to produce leather goods at the factory where he works. He makes use of a system where he only needs to focus on a specific item when the inventory levels of that item reaches the set ordering point. To make it even more convenient for Kabelo, he orders the same quantity every time he orders inventory. Which inventory-control system does Kabelo use?

1 The system of fixed-order quantities

2 The cyclical-ordering system

3 The materials-requirements planning system

4 The just-in-time system 

Answer 1

1 The system of fixed-order quantities