An Inventory System Answers Two Important Questions: When to Order

question 6

Multiple Choice

An inventory system answers two important questions: when to order and how much to order. Which of the following statements correctly explains how a Q system (continuous review system) or a P system (periodic review system) answers these questions?

• A) Under a P system, an order is placed to replenish the inventory position up to the target level T every P time period.
• B) Under a Q system, a fixed quantity is ordered every P time period.
• C) Under a P system, a fixed quantity Q is ordered when the inventory position reaches the reorder point R.
• D) Under a Q system, an order is placed to replenish the inventory position up to the target level T when the inventory position reaches the reorder point R.

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Definitions:

Dominate

To have control, power, or authority over something or someone.

Oblige

To bind morally or legally, as by a promise or contract.

Needs

Fundamental or basic requirements necessary for individuals to feel fulfilled, satisfied, and secure, including physical, emotional, social, and psychological aspects.

Patterns Of Violence

Refers to the recurring behaviors or acts that result in physical, emotional, or psychological harm to others, often observed in abusive relationships or societies.