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.

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Definitions:

°C

Degrees Celsius, a unit of temperature on the metric scale.

Moles

A measure of quantity in chemistry representing 6.022 x 10^23 entities of a substance.

Atm

A unit of pressure defined as exactly equal to 101,325 Pa, representing atmospheric pressure at sea level.

Temperature

A measure of the thermal energy of an object or substance, indicative of how hot or cold it is, typically measured in degrees Celsius, Fahrenheit, or Kelvin.