Which of the Following Is True Under the Periodic Review

question 41

Multiple Choice

Which of the following is true under the Periodic Review System?

• A) a lower level of safety stock is needed to buffer against uncertainty in demand over a longer planning horizon, compared to the EOQ system
• B) a higher level of safety stock is needed to buffer against uncertainty in demand over a longer planning horizon, compared to the EOQ system
• C) it is more expensive to administer compared to the Continuous Review System
• D) the only uncertainty is the magnitude of demand during the delivery lead time
• E) there are no discrepancies between physical inventory and the stock record

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Definitions:

Legal Drinking Age

The minimum age at which an individual is legally allowed to purchase and consume alcoholic beverages, which varies by jurisdiction.

Federal Funds

Central bank balances held by banks at the Federal Reserve which are available for lending to other banks overnight to meet reserve requirements.

State Highways

Roads managed by state governments, forming part of a state's transportation network, often connecting cities and towns.

Fourth Amendment

An amendment to the U.S. Constitution protecting individuals from unreasonable searches and seizures.