Which One of the Following Statements Concerning a Continuous Review

question 152

Multiple Choice

Which one of the following statements concerning a continuous review system is best?

• A) The inventory position (IP) of an item measures the item's ability to satisfy future demand, relying only on the on-hand inventory.
• B) An item's inventory position under a continuous review system increases by Q units as soon as an order is received.
• C) An item's on-hand inventory increases by Q units as soon as an order is placed.
• D) Under a continuous review system, an item's inventory position corresponds to the on-hand inventory unless there are backorders or one or more scheduled receipts.

---

Definitions:

Ebbinghaus

Refers to Hermann Ebbinghaus, a German psychologist known for his pioneering work on memory and the forgetting curve.

Rate of Forgetting

The pace at which information is lost over time from memory, often described by the forgetting curve.

Auditory Sensation

The perceptual experience of sound, which occurs when sound waves are converted into electrical signals processed by the brain.

Sensory Registers

The initial processing systems that store sensory information for very short periods of time, allowing it to be perceived.