Final answer:
In the fixed-time period inventory model with safety stock, the component that is not required to compute the order quantity is the ordering cost. This inventory model relies on factors such as average demand, safety stock, current inventory, and lead time, while the ordering cost is relevant in other inventory models but not directly needed here.
Step-by-step explanation:
The student's question relates to the fixed-time period inventory model, which is used in inventory management to determine the order quantity that a company should purchase to maintain stock at a level that prevents stockouts while also being cost-effective. In a fixed-time period (or periodic review) model with safety stock, the following elements are typically required for calculation:
- Forecast of average daily demand (a).
- Safety stock (b).
- Inventory currently on hand (c).
- Lead time in days (e).
The ordering cost (d), while an important factor in determining the economic order quantity in other inventory models, is not directly needed to calculate the order quantity in the fixed-time period model with safety stock. Instead, the model focuses on ensuring sufficient inventory by the end of the period, including safety stock to protect against variability in demand and lead time.