Which of the Following Statements Is True of a Fixed-Period

question 36

Multiple Choice

Which of the following statements is true of a fixed-period system (FPS)

• A) It orders a fixed quantity of items when the inventory position reaches or drops below the reorder point (r).
• B) It orders sufficient stock at the time of review to bring the inventory position up to the replenishment level (M).
• C) It maintains a constant order quantity every review period.
• D) It checks the inventory position on a continuous basis.