Certified Supply Chain Professional (CSCP) Practice Exam

Which of the following is an example of a fixed order quantity?

1. Variable batch sizes in manufacturing

2. Fixed vat size for beer brewing

3. Daily demand forecasting

4. Supplier choice based on availability

The correct answer is: Fixed vat size for beer brewing

A fixed order quantity system refers to a replenishment strategy where a specific, predetermined quantity is ordered each time a reorder is triggered. This approach helps maintain inventory levels and simplifies the ordering process, as the same amount is consistently ordered regardless of demand fluctuations or other factors. In the context of beer brewing, maintaining a fixed vat size means that each batch brewed will utilize the same volume capacity for production, aligning with the principles of fixed order quantity. This consistency ensures that production schedules can be effectively planned and managed, and inventory can be controlled more easily. The other options illustrate varying degrees of flexibility or variability that do not align with the concept of fixed order quantity. Variable batch sizes in manufacturing, for example, indicate a system where production sizes can change based on different factors, such as demand or production capabilities. Daily demand forecasting reflects a reactive approach to ordering rather than establishing a fixed quantity ahead of time. Lastly, supplier choice based on availability emphasizes adaptability in sourcing instead of adhering to a predetermined order quantity, which contradicts the essence of fixed ordering.