Final answer:
The order point system involves calculating the order point, fixed order quantities, and variable time intervals between orders.
Step-by-step explanation:
In the order point system, the following statements are true:
- A) The order point depends upon the demand during the lead time plus safety stock: The order point is the inventory level at which a new order should be placed to replenish stock. It is calculated by considering the average demand during the lead time (the time it takes for a new order to arrive) and adding a safety stock to account for any unexpected variations in demand or lead time.
- B) Order quantities are usually fixed: When using the order point system, it is common to have fixed order quantities. This helps in streamlining the ordering process and maintaining consistent inventory levels.
- C) Time intervals between orders are constant: Time intervals between orders are not necessarily constant when using the order point system. They depend on factors such as lead time, demand patterns, and the desired level of safety stock.
Therefore, the correct answer is E) B and C are true.