Question

Model most appropriate when a fixed amount must be purchased each time an order is placed.

Short answer

Fixed-order quantity model is the most appropriate when a fixed amount must be purchased each time an order is placed.

Step-by-step solution

Definition of Fixed-order quantity model

Fixed-order quantity modelinitiates an order when the event of reaching a specified reorder level occurs. This event may happen at any time, looking at the demand for the items considered.

Explanation

The model that is the most appropriate when a fixed amount must be purchased each time an order is placed is described as the Fixed-order quantity model. Fixed–order quantity model is an inventory control model where the number requisitioned is fixed and therefore the actual ordering is triggered by inventory dropping to a specified level of inventory.