Which inventory models are event triggered?

The fixed-order quantity model, often referred to as a reorder point model, is considered event-triggered because it is activated by a specific event – namely, when inventory levels reach a predetermined reorder point. This model relies on real-time inventory data, prompting an order to be placed as soon as inventory drops to that threshold, ensuring that stock levels are maintained without overstocking. The event that triggers this action is the inventory level falling to a point where replenishment is necessary to avoid stockouts.

In contrast, other inventory models may not react to real-time events in the same manner. For example, single-period models are designed for products that have a single selling season or demand period, and while they focus on optimizing inventory for that specific timeframe, they do not adjust based on immediate inventory levels as events occur. Periodic review models, on the other hand, involve checking inventory levels at specific intervals and making decisions based on total inventory at that time rather than triggering actions through events.

Thus, the fixed-order quantity model's reliance on specific inventory levels to dictate when to reorder makes it distinctly event-triggered compared to the other inventory models, which have different operational structures.