Which of the Following Statements Regarding a Continuous Review (Q)

question 43

Multiple Choice

Which of the following statements regarding a continuous review (Q) system for inventory control is FALSE?

• A) On- hand inventory, scheduled receipts and backorders are used to calculate the inventory position.
• B) A fixed quantity of inventory is ordered each time the inventory position reaches a predetermined minimum level.
• C) The reorder point is the fixed quantity Q of the item that is ordered each time inventory is replenished.
• D) The remaining inventory of an item is tracked every time a withdrawal is made.

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Definitions:

Operation Bootstrap

An economic development program initiated in Puerto Rico in the late 1940s to transform the economy from agriculture-based to industrial.

Puerto Rican Economy

Refers to the economic structure, dynamics, and trends of Puerto Rico, a territory of the United States, which includes industries such as manufacturing, services, and tourism.

Mexicans

Referring to the people of Mexico or persons of Mexican descent, their culture, or nationality.

Large-Scale Entry

Refers to entering or participating in a market or industry on a extensive scale, typically implying significant resources or capacity.