Which of the Following Statements Regarding a Periodic Review (P)

question 152

Multiple Choice

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

• A) Stockout protection is required for a longer time interval than continuous review systems for inventory control.
• B) The target inventory level is set based on the average demand during the protection period plus safety stock.
• C) The quantity ordered each time is a fixed lot size Q equal to the reorder point (R).
• D) An item's inventory position is reviewed periodically rather than continuously.

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Definitions:

Oxygen Gas

A diatomic molecule made up of two oxygen atoms (O2), essential for respiration in most terrestrial life forms and used industrially.

Fuel Source

A material that is consumed to produce energy, such as coal, oil, natural gas, or renewables like solar and wind.

Energy Form

Different manifestations of energy, such as kinetic energy, potential energy, thermal energy, electrical energy, chemical energy, and nuclear energy.

Mass-Energy Transfer

The concept that mass and energy are interchangeable, underpinning the principle of mass-energy equivalence.