Question

Robert owns a hardware store. He sells the same type of products consistently. Robert should use which of the following buying methods?

Choose the answer.

a. just In time


b. fixed order


c. economic order quantity

Answer 1

Fixed Order

Step-by-step explanation:

Robert should use fixed order quantity method because in this method maximum and minimum inventory levels are fixed. Moreover, he can set reorder point to replenish the amount of inventory when it reaches to reorder point. When he set a reorder point, an automatic order will be placed to the supplier for supply pre-fixed quantity to reach the inventory level to its maximum.