A grocery store allows a cereal supplier to replenish cereal boxes when the inventory quantity reaches less than or equal to 100 units. Which replenishment technique is the store using?

A fixed quantity system involves ordering a predetermined quantity of inventory whenever stock levels reach a specific point; however, it does not necessarily imply that the supplier manages inventory. Instead, the store controls the ordering process, making this choice inaccurate for the scenario described.

Economic order quantity is a calculation used to determine the optimal order quantity that minimizes total inventory costs, including ordering and holding costs. While it can be related to replenishment strategies, it does not specifically indicate that the supplier is responsible for managing inventory levels, which is central to this scenario.

Reorder point refers to the inventory level at which a new order should be placed to avoid stockouts. While the scenario does mention a specific quantity (100 units) that triggers replenishment, it does not clarify control over inventory management, which is a key aspect of VMI.