Which One of the Following Statements About Inventory Control Systems

question 134

Multiple Choice

Which one of the following statements about inventory control systems is TRUE?

• A) An optional replenishment system is particularly attractive when both review and ordering costs are significant.
• B) Overstocking is quite common for those items that are managed by using the base- stock system.
• C) Visual systems are difficult to administer because records on current inventory position have to be kept for every item.
• D) A two- bin inventory system is essentially a P system because the inventory is reviewed only on a periodic basis.

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